Bitcoin surges 40% as China endorses blockchain technology

The world’s largest cryptocurrency, Bitcoin, rallied by more than 40% over the weekend following comments from Chinese President Xi Jinping, who acknowledged that China will be at the forefront of blockchain technology innovation.

On Friday, just hours after the announcement, Bitcoin defied all technical levels by rallying up to $10,400 before consolidating back below $9,500.

The daily death cross has now been avoided despite looking like a certainty when Bitcoin was below $8,000 last week.

In order for the daily death cross to come into fruition, Bitcoin needs to trade significantly lower than $8,600, which is where the 200 EMA is currently residing.

But the strength of the weekend’s rally simply cannot be ignored as it was the most fruitful day in terms of daily trade volume in the history of Bitcoin.

More than $50 billion was traded in a 24-hour period from Friday to Saturday – $10 billion more than the previous high set in June this year.

The next hurdle for Bitcoin is closing a daily candle above the psychological $10,000 level of resistance. This would provide a platform for a rally to new all-time highs in the New Year.

The daily 100 EMA is currently being used as support as it’s residing above $9,000. This level needs to hold to avoid a correction back to the low $8,000 range.

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