Bitcoin renews multi-week highs near $4000
|- BTC/USD moves out of its 10-day trading channel.
- Bitcoin's market cap moves closer to $70 billion.
After struggling to find direction and moving up and down in a relatively tight range between $3600 and $3800, Bitcoin gained traction and peaked above $4000 for the first time since January 10. Based on Bitfinex data, the BTC/USD pair was last seen trading at $3960, adding nearly 6% on the day. Today's upsurge in Bitcoin's price also boosted its total market capitalization, which is now around $68 billion according to coinmarketcap.com.
The 23.6% Fibonacci retracement of the sharp drop the pair suffered from Nov. 14 to December 14 now aligns as the initial resistance in the $3990 - $4000 region and a daily close above that level could allow the pair to extend its rally toward $4220 (2019) high ahead of $4470 (38.2% Fibo).
Although today's price action seems to be driven by a technical buying wave after the pair broke out of its condolidating channel, reports of Bitmain technologies introducing a new 7-nanometer Bitcoin mining processor that will reportedly increase the energy efficiency of mining operations dramatically may have provided an additional boost to Bitcoin as well.
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