Bitcoin prices rallied today, enjoying some notable gains and reaching their loftiest value in more than five weeks.
The cryptocurrency rose to as much as $11,592.15, according to CoinDesk.
At this point, the digital asset had appreciated 3.4% in less than 24 hours and was trading at its highest level since September 2, additional CoinDesk figures show.
When explaining these latest price fluctuations, analysts emphasized both fundamental and technical factors.
Key Fundamental Developments
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, highlighted some important developments in the space, as well as how they affected the markets.
“So what we are seeing here is that Bitcoin first dropped following the BitMEX news and Trump's COVID announcement, but managed to hold the support at $10K,” he stated.
Guy Hirsch, managing director for US at eToro, also weighed in on recent news.
“Bitcoin has received a number of major boosts over the past week including Square’s announcement that it purchased $50 million worth of BTC to hold in its corporate treasury.”
“Additionally, a resurgence of COVID in Europe and the US, plus uncertainty around US elections has led to a perfect storm of conditions for Bitcoin to move upward; and so it did over the weekend.”
“Another boost to bitcoin’s trajectory actually came from a competing coin, with Grayscale announcing that it’s Ethereum Trust is now an SEC reporting company,” he noted.
Pursuant to this change, the trust will start providing more detail to the public on its finances, according to SEC documents reported on by CoinDesk.
Hirsch emphasized that “this move brings it in line with the Bitcoin Trust (GBTC), and offers yet another on-ramp into the crypto ecosystem.”
“Given the relatively small size of the digital asset market (when compared against traditional assets), there tends to be a correlation between the top coins, with spillover effects often resulting in them moving together during huge price swings.”
“These developments set up BTC for what could be a prolonged bull run that could see BTC surge past $12,000 and beyond,” he stated.
“Bitcoin is also trading higher in sympathy with Ethereum, which is benefiting from the news related to Grayscale and its Ethereum Trust, as well as ongoing growth in the DeFi ecosystem as evidenced by the total value locked,” he stated.
Bitcoin has been trading north of $11,000 since Friday, October 12, according to CoinDesk.
Since later that same day, the digital asset has been trading within a reasonably well-defined range, fluctuating between roughly $11,200 and $11,600.
Several analysts weighed in on this price action, offering some technical analysis.
“Bitcoin has confirmed a break above the daily Ichimoku cloud and the key resistance level of $11,200, and it has been on a 6-day bullish streak,” said Kiana Danial, CEO of Invest Diva.
“We could potentially see a bit of a pullback here towards $11,200 again, but the break above these key levels is a very strong bullish indication that could help push the Bitcoin price towards the August highs of around $12,400 in the medium term,” she stated.
Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet, also offered his perspective, stating that “bitcoin seems to be testing the $11,600 to $12,300 resistance zone.”
DiPasquale offered some final input on the matter.
Currently, “$11.5K is acting as a resistance level, and has rejected the price for two days now, today being the third.”
“From here, we can expect further tests of the $11K support, until the market gains enough confidence to breach $11.5K and give $12K a chance.”
By Charles Bovaird, Senior Contributor | Crypto & Blockchain