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.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
