Bitcoin skyrockets to new all-time high above $5000

After failing to break above the critical $5000 handle in the last couple of days, the BTC/USD pair finally made a decisive move on Thursday and refreshed its record high at $5417. As of writing, the pair was trading at $5300, adding nearly $500, or 10%, on the day.

Although there were no clear catalysts behind that recent upsurge, the fact that the pair rose above $5000 may have triggered a technical buying wave. Commenting on the record-setting rally, "there are many explanations, such as Amazon bringing bitcoin on their platform, Goldman Sachs exploring the idea of bitcoin desk, geopolitical risk providing the tailwind and the mighty dollar losing its throne," Naeem Aslam, an author at Forbes Magazine, wrote in a recent article. Moreover, experts think that the upcoming split in November has been playing an essential role in the rising demand for bitcoin.

In the meantime, a report by Cryptocoinnews.com claimed that bitcoin trading would likely resume with more regulation in China, according to the state-owned news outlet Xinhua.

In early September, the pair plunged below the $3000 mark on China's imposed ban on crypto ICOs and negative comments from respectable bankers. Since then, the pair gained more than 70%.

Technical outlook

The pair could face the initial hurdle at $5500 (daily high/psychological level) before aiming for the next psychological level at $6000. On the downside, $5000 (previous record high/psychological level) is now the first technical support followed by $4550 (Oct. 9 low) and $4100 (Oct. 5 low).

 

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