Bitcoin breaks above $7 000 again amid wider risk-on rally

Largest crypto has seen an 11% rally so far in April.
Largest digital token could see further gains if it holds above $7 000. Image: Bloomberg

As risk assets regain their mojo amid optimism the coronavirus spread is beginning to level off, Bitcoin’s back above $7 000.

The largest cryptocurrency gained as much as 6.4% Monday to $7 193, its highest in nearly a month. That’s its biggest one-day gain in two weeks and caps a near 11% rally for Bitcoin so far in April.

“Risk-on mode was evidenced across both crypto and non-crypto markets, as market participants reacted positively to signs that coronavirus outbreaks have started to stabilise in some of the worst-affected countries,” said Denis Vinokourov, head of research at Bequant, a London-based digital asset firm. “For Bitcoin, it was more of a continuation of the trend that started last week, and, this time, Bitcoin’s attempt to break above $7 000 was much more resolute.”

Bitcoin’s rally corresponds to a surge in equity markets. And the gains are a welcome reprieve for crypto fans following a brutal March that wreaked havoc on Bitcoin and peer tokens amid wider financial market turmoil.

If the current price can hold above this level, at least one technical measure suggests Bitcoin could see a run to $8 000, where the coin was trading ahead of its massive drop last month. The $7 000 threshold was a solid support line for Bitcoin between November and January — remaining above it could provide support should it decline again.

Bitcoin could ascend to the $7 500 level, according to Craig Erlam, senior market analyst at Oanda. “It’s struggling to gather the momentum required to break the barrier down but as we know with Bitcoin, that can change dramatically in a heartbeat,” Erlam wrote in a note. “If it breaks through those levels, then we could be looking at a healthy surge and another run towards $10 000.”

© 2020 Bloomberg

COMMENTS   0

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: