Story by: Charles Bovaird
Bitcoin prices rallied today, reaching a fresh 2020 high as the digital currency benefited from multiple tailwinds.
The cryptocurrency climbed to $9,745.17 at roughly 1:30 p.m. EST, according to CoinDesk price data.
At this point, the digital asset was up close to 7% in under 24 hours and was trading at its highest level since late October, additional CoinDesk figures show.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
When explaining bitcoin’s latest gains, analysts pointed to a range of factors.
“There are plenty of bullish narratives for bitcoin at the moment both fundamental and technical,” said Mati Greenspan, founder of Quantum Economics.
In terms of fundamentals, he cited developments like the halving, which is scheduled to take place in May, as well as Lightning Labs’ recent success in raising $10 million to build out its payments network.
Further, Greenspan emphasized “strong volumes and momentum.”
Charles Hayter, cofounder and CEO of digital currency data platform CryptoCompare, offered a similar perspective, stating that “we may be seeing several trends driving the bitcoin price.”
“A very strong January has now seen Bitcoin break its 200 day moving average – usually a very positive signal,” he noted.
“More broadly, the upcoming Bitcoin halving in May is buoying investor interest.”
Hayter added that “we are also seeing a number of indexes too which show a global move to create products that allow exposure to digital assets.”
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, provided some technical analysis on the digital currency.
“Bitcoin has surpassed $9,500 and is trading above $9,700,” he stated.
“However, the resistance range still holds ($9,500 marked the start of the zone and it ends around $9,850),” said DiPasquale.
“If today’s candle closes well above $9,500, then we can start considering $9,500 as a weak support,” he added.by