Bitcoin gains more than 10% and surges above $7000

Bitcoin is on track to close the third day in a row with robust gains.
News of Square, Inc. considering using cryptocurrencies fueled today's rise.
All-time high is back in reaching distance.

Eren Sengezer FXStreet

The BTC/USD pair added more than $700 on Wednesday to refresh its highest level since last week's record setting rally at $7310. At the time of writing, the pair was trading at $7270, gaining nearly 10% on the day.

Square, Inc. a mobile payment company that offers credit card processing services, announced that it was testing the use of cryptocurrencies to be used in its mobile application Cash.“We’re always listening to our customers and we’ve found that they are interested in using the Cash app to buy bitcoin. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we’re excited to learn more here,” a spokesperson for the company told Reuters.

Despite today's impressive rise, questions about how bitcoin's transaction speeds and costs will be improved remains unanswered and investors could wait for more clarity on this matter before pushing the pair to new record peaks.

Technical levels to consider

The pair could face the firt technical hurdle at $7500 (Nov. 9 high) before making another attempt at $7900/$8000 (record high/psychological level). On the downside, supports align at $6600 (daily low), $5800 (Nov. 13 low) and $5000 (psychological level).

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.

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