Bitcoin has hit a new all-time high today, with prices reaching $5,226 on the CoinDesk Bitcoin Price Index.

At press time, the bitcoin-U.S. dollar (BTC/USD) exchange rate is trading at $5,200 levels. Week-on-week, BTC is up 18.75 percent, while month-on-month it’s up 23 percent. The new record broke a previous all-time high of $5,013 set in September.

All in all, it’s a sharp reversal of trend given the cryptocurrency dropped to a low of $2,980 in mid-September on the news China had banned token sales and that local cryptocurrency exchanges would shut in the aftermath. However, in subsequent days, bitcoin’s price quickly regained, reportedly due to a pick-up in trading volumes in Japan, South Korea and other markets.

Increased institutional interest seems to have played a role in boosting bitcoin prices.

For example, a rumored “bitcoin desk” at Goldman Sachs would certainly be a game changer for the nascent market. Still, it’s just the latest sign professional traders are increasingly interested in the market.

Further, even while skeptics continue to call the bitcoin rally a bubble, the price action analysis indicates no serious trouble ahead for the cryptocurrency.

Weekly chart

The chart above shows that:

  • Bitcoin is chipping away at $5,154 – resistance offered by 161.8 percent Fibonacci extension of the move from the April low – June high – July low.
  • The RSI is overbought, although it’s not a cause for concern, as the indicator is still well below the highs seen in August and June.

Daily Chart

  • On the above chart, resistance is seen at $5,378.56 – 161.8 percent Fibonacci extension of the move from the Sept. 15 low – Sept. 18 high – Sept. 23 low.
  • The RSI is overbought.
  • All major moving averages – 50-day moving average, 100-day moving average and 200-day moving average – are perfectly aligned one below the other, which indicates the long-run trend is bullish.

View

  • A break above $5,154 would open doors for $5,378.56.
  • A healthy technical pullback cannot be ruled out, given the overbought conditions. On the downside, the key support levels to watch out for are $5,000, $4,809, $4,500.

Water ballons via Shutterstock

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The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.