Bitcoin extends rally, comes within touching distance of $8000
- Bitcoin adds more than $500 on Thursday as the rally continues.
- Bitcoin cash drops further toward $1000 mark.
- Trading volume rises above $10 billion.
Following the sharp sell-off witnessed on the weekend, bitcoin is looking to close the fourth straight day with substantial gains. After rising to its highest level since November 8 at $7811, the BTC/USD pair started to consolidate its earnings and was last seen trading at $7755, adding $480, or 6.6%, on the day.
Although there were no clear catalysts behind today's advance, the rising trading volume in the cryptocurrency market and further losses witnessed in bitcoin cash suggest that bitcoin is again the favorite asset for market participants who want to invest in digital currencies.
Meanwhile, the pair received an additional boost from the developments in Zimbabwe. The CNN reported that the price of bitcoin rose to $13,000 on Golix, a local digital currency exchange in Zimbabwe, amid political turmoil and an apparent coup in the country.
Technical levels to consider
With a break above $7900 (record high), the pair could easily push to the next psychological resistance at $8000. However, the ongoing uncertainty surrounding the next upgrade for bitcoin could trigger a profit-taking and keep the gains above that level limited. On the downside, supports align at $7000 (psychological level) ahead of $6600 (Nov. 15 low) and $5800 (Nov. 13 low).