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Bitcoin Rallies To 3-Week High Amid Strong Momentum

Bitcoin prices climbed above $7,200 today, reaching their highest since mid-March as several analysts pointed to bullish momentum.

The digital currency rose to $7,260.32 at roughly 2:45 p.m. EDT, according to CoinDesk data.

At this point, it had increased roughly 7.8% in less than 24 hours, and was trading at its highest since March 12th, additional CoinDesk figures show.

The world’s most prominent digital currency could be headed for further gains, market observers emphasized.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

“Last week’s break above the $7,000 level was limited by profit taking, but today’s move above $7,000 is much more convincing because there is little evidence of stop loss selling,” said Denis Vinokourov, head of research for London-based digital asset firm Bequant.

“This, together with further widening of spread between futures and spot pricing, and bullish options flow positioning, suggests that the market will continue to grind higher.”

Kiana Danial, CEO of Invest Diva, also gave an optimistic assessment.

“We have a solid bullish engulfing candlestick pattern that indicates the bulls have gained momentum,” she noted.

“It is also testing the lower band of the daily Ichimoku cloud which is now a key resistance level,” said Danial.

“We could see a bit of a pullback here again but if it breaks above the cloud, then we have more certainty that it could reach above $7600 in the medium term,” she stated.

Evan Kuo, CEO and cofounder of digital currency firm Ampleforth, also weighed in on technical factors.

“It’s encouraging to see Bitcoin above the $7K resistance mark in the broader descending channel,” he stated, describing it as “something to watch closely.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.

Source: Forbes – Money

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