COTD - 10/05 Bitcoin
In light of the continued positive rally from April and into May. today we're going to take a quick look at the Bitcoin chart.
Yesterday saw the digital currency cross over the $6,000 mark, a 6 month high for the digital asset, this is still a far cry from Bitcoin's peak of $19,511.00, according to Bloomberg.
One of the drivers behind the more recent leg higher is the news that the SEC is considering a new Bitcoin & Ethereum Exchange Traded Fund (ETF) application, on the back of this we are seeing both Bitcoin & Ethereum trading near the peak of their 30-day trading range.
Another theory that is circulating is that the rally is also being fueled by the trade war ongoing between the U.S. & China, as tariffs create geographic arbitrage, driving money off-grid and ultimately that plays into cryptocurrencies hands.
These factors tied together with increasing utility in some of the cryptocurrencies has seen volumes pick up as investors gain more confidence in the fact that there profit in utilising the digital assets and technology tied to them.
Taking a look at the technicals, now that we have pushed through $6,000 level the next logical resistance level is at the next "fat-figure" of $7,000 but that level has not really acted as significant support or resistance previously so we could be looking closer to $8,000 as the next resistance level.
However, given the fickle and volatile nature of the cryptocurrencies, we will have to wait to see if this rally is sustained.
BTCUSD
Yesterday saw the digital currency cross over the $6,000 mark, a 6 month high for the digital asset, this is still a far cry from Bitcoin's peak of $19,511.00, according to Bloomberg.
One of the drivers behind the more recent leg higher is the news that the SEC is considering a new Bitcoin & Ethereum Exchange Traded Fund (ETF) application, on the back of this we are seeing both Bitcoin & Ethereum trading near the peak of their 30-day trading range.
Another theory that is circulating is that the rally is also being fueled by the trade war ongoing between the U.S. & China, as tariffs create geographic arbitrage, driving money off-grid and ultimately that plays into cryptocurrencies hands.
These factors tied together with increasing utility in some of the cryptocurrencies has seen volumes pick up as investors gain more confidence in the fact that there profit in utilising the digital assets and technology tied to them.
Taking a look at the technicals, now that we have pushed through $6,000 level the next logical resistance level is at the next "fat-figure" of $7,000 but that level has not really acted as significant support or resistance previously so we could be looking closer to $8,000 as the next resistance level.
However, given the fickle and volatile nature of the cryptocurrencies, we will have to wait to see if this rally is sustained.
BTCUSD
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