New Highs in Sight? Bitcoin Moves Back Above $7,500
Bitcoin is showing no signs of stopping its recent upwards surge. As prices climb once again, are new highs on the horizon?
There seems to be no stopping the bitcoin freight train.
Having taken the 61.8 percent Fibonacci retracement level yesterday, the world's largest cryptocurrency by market capitalization rose to eight-day highs above $7,520 today. As of writing, the bitcoin-U.S. dollar (BTC/USD) exchange rate is at $7,459 – a 2.54 percent gain for the session, as per CoinDesk's Bitcoin Price Index
Stepping back, prices had dropped 29 percent after the developers suspended a controversial software upgrade, known as Segwit2x, on Nov. 8.
However, the sell-off was cut short near $5,500 by the 50-day moving average (MA) on Nov, 12. A rally in the subsequent days all but erased the likelihood of a drop to $5,000 levels. Then, yesterday, a move above $7,000 improved the odds of a continued rally to record highs above $7,800. Currently, BTC is just $312 short of its Nov. 8 record of over $7,800.
Possibly exerting influence on prices in recent days, comments on social media show the investor community has started analyzing the effect of a potential rotation of money out of stocks and bonds and into bitcoin. CME Group's recently announced BTC futures contract is likely to begin trading as soon as December.
The new offering will allow institutional investors to diversify into a high yielding asset like bitcoin – especially if the equity markets respond negatively to increased odds of a Fed rate hike.
The price action analysis also indicates the tables may have turned in favor of the bulls.
Scope image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, 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. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.