Bitcoin is rallying today, having bottomed out below the $6,000 mark yesterday.
As of writing, global average prices are around $8,150. On Coinbase's GDAX exchange, bitcoin (BTC) moved above $7,944 – the confluence of 200-day moving average (MA) and 5-day MA – earlier today and was last seen changing hands at $8,200
The cryptocurrency has appreciated by 26 percent in the last 24 hours, according to CoinMarketCap. Also, prices are up 38 percent from the previous day's low of $5,947.40, as per the BPI.
Across social media, the sharp rise in BTC is being attributed to the U.S. Securities and Exchange Commission's (SEC) and the Commodity Futures Trading Commission's (CFTC) cautiously optimistic tone set at a Senate hearing yesterday. Investors seem to have taken heart from the fact that members of Congress and the SEC see potential in blockchain technology. Also, industry observers were impressed by the measured and sophisticated nature of the dialogue.
So, it appears bitcoin has moved out of the hot water, and the technical studies seem to confirm that a bottom has been made.
4-hour chart: Bullish price RSI divergence
The bullish price RSI divergence (marked by dashed lines) indicates a short-term bearish-to-bullish trend change.
Accordingly, BTC has moved above $8,000, but is yet to clear the descending trendlines hurdle marked as (1) and (2).
Current resistance is $10,000 and support at $8,000. A daily close (as per UTC) above the 10-day MA would open doors for a test of $10,000 – $10,623 (weekly 5-day MA). Further gains appear unlikely just yet, given the bearish crossover on the weekly chart.
As of writing, global average prices are around $8,150. On Coinbase's GDAX exchange, bitcoin (BTC) moved above $7,944 – the confluence of 200-day moving average (MA) and 5-day MA – earlier today and was last seen changing hands at $8,200
The cryptocurrency has appreciated by 26 percent in the last 24 hours, according to CoinMarketCap. Also, prices are up 38 percent from the previous day's low of $5,947.40, as per the BPI.
Across social media, the sharp rise in BTC is being attributed to the U.S. Securities and Exchange Commission's (SEC) and the Commodity Futures Trading Commission's (CFTC) cautiously optimistic tone set at a Senate hearing yesterday. Investors seem to have taken heart from the fact that members of Congress and the SEC see potential in blockchain technology. Also, industry observers were impressed by the measured and sophisticated nature of the dialogue.
So, it appears bitcoin has moved out of the hot water, and the technical studies seem to confirm that a bottom has been made.
4-hour chart: Bullish price RSI divergence
The bullish price RSI divergence (marked by dashed lines) indicates a short-term bearish-to-bullish trend change.
Accordingly, BTC has moved above $8,000, but is yet to clear the descending trendlines hurdle marked as (1) and (2).
Current resistance is $10,000 and support at $8,000. A daily close (as per UTC) above the 10-day MA would open doors for a test of $10,000 – $10,623 (weekly 5-day MA). Further gains appear unlikely just yet, given the bearish crossover on the weekly chart.