BITCOIN EXTENDS RALLY TO OVER $10,000
Bitcoin extended the rally to trade above $10,000 for the first time in two weeks. The rally came as the regulatory noise that dominated the markets in recent times seemed to fizzle out.
The current rally started last week when the Commodities and Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) appeared before a Senate committee. Asked about their recommendations about cryptocurrencies, they emphasized on regulatory issues instead of outright banning of the currencies.
This language was divergent from the one used by other regulators, particularly in South Korea and China. This week, however, the South Korean government toned down the criticism of cryptocurrencies. The minister of the office for government coordination, Hong Nam-Ki released a statement saying the government was not prepared to ban cryptocurrencies trading. Traders take this as a positive thing for the currencies.
In the past two weeks, bitcoin has gained by almost 50% and is currently trading at $10,200. The continued stability could bring more demand for the currencies. In fact, a report by CNBC showed that online brokers have started seeing more stability caused by more demand.
The BTC/USD is currently trading well above the 25-day and 15-day moving average. The pair’s average directional index is currently near 40, which is an indicator of a strong trend. At the same time, the pair appears to be forming a cup and handle pattern. Therefore, there is a likelihood that the pair could continue moving up, potentially to the $11,700 level.