Bitcoin, Ether Price Surge May Not Last: Crypto Markets Analysis

As those levels fall well outside the range of normal hourly RSI movement, the RSI may cool, at least from an intraday perspective

Current daily RSI levels for BTC and ETH are both approximately 71. Traditionally, 70 is used as a benchmark for overbought conditions, so both are close to reaching those levels. Merely breaching a traditional level is not enough to determine if price movement is going to change direction, however. An “overbought” asset can remain that way for extended periods under the right conditions.

Volume will likely play a large role in determining whether Tuesday’s price move marked the beginning of a fourth-quarter push higher, or merely a short-term spike in volatility that will soon cool.

Wednesday’s volume gives early hints of the former as today’s price increases were met with higher activity. Should BTC continue to push higher, the price could elevate towards $21,400. For ETH, the upside appears to be just shy of $1,600.

Targets for mean reversion could be $19,400 and $1,300, in line with both of cryptocurrencies' 20-period moving averages.

Exchange net flow may also indicate market trends. While it’s uncertain whether investors are looking to sell into Tuesday’s rally, they appear positioned to do so if need be. BTC and other cryptos have been moving on to exchanges recently.