Story by: Vildana Hajric
Bitcoin’s push above $10,000 this week has technical measures used by some analysts flashing positive signals.
The largest digital asset is trading in a narrow range between its 50- and 100-day moving averages, with the former acting as a ceiling. A break above that key level, around $10,714, could suggest more gains ahead.
Cryptocurrencies dropped last week on no apparent catalyst, prompting a guessing game among investors and speculators over what caused the sudden sell-off. On Aug. 28, Bitcoin closed below the $10,000 level for the first time since July.
Prices recovered over the weekend, with Bitcoin gaining 11% since Friday and rival coins, including Litecoin and Ether gaining more than 5% each. Diehards got another dose of good news on Tuesday after VanEck Securities Corp. and SolidX Management LLC said they plan to issue shares in an ETF-like product to qualified institutional buyers.
“All the signs are there that institutions are interested, and this, to me, is part of that trend,” said Bloomberg Intelligence analyst Mike McGlone. “It looks like it could continue to go up and it’s got some good reasons,” he said, adding that news Argentina will institute capital controls to halt a slump in foreign-currency reserves and the peso may also be behind the moves.
But not all strategists are as optimistic. To Ed Moya, chief market strategist at Oanda Corp., the rally looks to be short-lived.
“Security vulnerabilities and stricter regulatory hurdles are likely to keep this rally short-lived,” he said. “We could see this rebound be temporary.”