Cryptocurrencies

Bitcoin surges to six-week high as bullish breakout beckons

Bitcoin has rallied towards an impressive six-week high of $8,000 as a potential bullish breakout becomes increasingly likely.

The world’s largest digital asset has now risen by 17% since January 2 as positive sentiment slowly creeps back into the cryptocurrency markets.

More than $20 million in long positions were liquidated on BitMEX following the daily candle close as Bitcoin momentarily traded above $8,000 for the first time since November.

The $7,900 region remains a key level of resistance as it suppressed price on November 29. This level was also used as support on numerous occasions throughout September.

A breakout above this level would be the first step towards testing the confluence of the death cross, which is at $8,630.

A significant continuation above this region would likely trigger a bullish reversal in the price of Bitcoin – a stark contrast to the seven-month downtrend it has been in since June.

Last year was a tremendous year for Bitcoin. BTC surged from $3,800 all the way to $14,000 on the back of Facebook’s Libra announcement.

Despite proceeding to lose 50% of its value as the hype subsided, the digital asset still ended the year 100% up from the end of 2018.

During the downtrend last year, Bitcoin formed four consecutive lower highs that are typical of a bear market, while several of the top altcoins staggeringly dropped by more than 70%.

For more news, guides, and cryptocurrency analysis, click here.

Oliver Knight

Londoner ‘Ollie’ graduated from Birmingham City University with a journalism degree in 2016. He combines his writing with his love of crypto and blockchain here at Coin Rivet, saying “It disrupts well-established institutions (banks) while giving an avenue to the less fortunate to achieve financial freedom.” Like all true Londoners, his pet hate is… “People standing on the left-hand side of the escalators on the Tube!”.

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