Bitcoin and Ethereum have jumped more than 4% in the past six hours despite the GDP figures

The two largest cryptocurrencies by market capitalization, Bitcoin and Ethereum, appear to have entered a new uptrend despite news that the US economy has entered into “retrograde technique“.

Bitcoin and Ethereum on the rise

Both Bitcoin and Ethereum generated significant gains over the past few hours following the release of the latest US GDP numbers.

Total cryptocurrency market capitalization increased by around $40 billion after reports that the US economy had contracted for the second straight quarter. The Bureau of Economic Analysis said US gross domestic product (GDP) fell 0.9% at an annualized rate.

With the US economy now technically in decline, bitcoin seems to be taking center stage. The flagship cryptocurrency has gained over 900 points in market value since the GDP figures were released. Now that Bitcoin’s bullish momentum has been affirmed, the flagship cryptocurrency is showing early signs of wanting to price higher.

Sequential Tom DeMark (TD) presented a sell signal on the chart in four hours. Although the bearish signal anticipates a retracement towards $23,260 or even $22,690, BTC is showing its strength by approaching $24,000. A four-hour luster close above this crucial resistance zone could invalidate the pessimistic near-term outlook and lead higher towards $25,500.

Four-hour chart of BTC. (Source: TradingView)

Similarly, Ethereum has seen a rally of almost 7% in the last six hours. This rise allowed ETH to clear an important resistance zone at $1,650. Now, the TD risk line at $1,750 appears to be the next hurdle that ETH must overcome to gradually move higher.

A decisive four-hour luster close above $1,750 could lead to enough bullish momentum to push Ethereum towards $1,830 or even $1,900. However, ETH needs to hold above $1,680 to validate this bullish thesis. If not, it could be worth a profit-taking spike that pushes Ethereum back to $1,600 or even $1,550.

ETH four-hour chart. (Source: TradingView)

As macro conditions continue to deteriorate, market participants might believe that the latest US GDP numbers have been priced in. Negative growth could also thwart the Fed from moving to looser monetary policy sooner than expected. Even with so much uncertainty in the global economy, it looks like cryptoassets are finding the strength to rally in the near term.

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