After a considerable peak in purchasing volume, the bitcoin (BTC) rate rose sharply yesterday afternoon. This rise occurred after bitcoin (BTC) was trading sideways for most of the day yesterday. However, the direction was clearly down for a few days. A possible reason for the increase is a ruling by a court in China.
At the time of writing, the price of bitcoin (BTC) is $ 10,511 according to CoinMarketCap after an increase of 6.6% in the last 24 hours. In the past two days, bitcoin was mainly trading below $ 10,000 after a low of $ 9,071 was reached on July 17.
The second-largest cryptocurrency based on market capitalization, ethereum (ETH), has largely followed bitcoin in recent days. For example, the supports were broken at $ 240 and eventually the $ 200. After bitcoins revival, however, the price has again risen above $ 200. ETH is therefore currently worth $ 222.70 after an increase of 2.4%.
When we look at bitcoin, we see that the course started a rapid price rise around 3 p.m. yesterday. In a short time, bitcoin rose from $ 9,300 to the resistance at $ 10,800.
The rate has already been consolidating there for a number of hours. With the rise, the bulls managed to get the price above the falling trend line and the 100- Moving Average (MA) on the hourly graph, both of which were about the same place.
As a result, the resistances at $ 10,000 and $ 10,100 were convincingly broken. At the moment, the next resistor is $ 10,800, which has already tested the price before. If the bulls manage to break through this resistance, then the next hurdle is $ 11,000. If they manage to close the day above this level, any further increases are in the offing.
In the scenario in which the price drops again, support may be found on the $ 10,100 where the 100-MA is currently still located.
A possible reason why the rate suddenly started to rise is reporting from China. Bitcoin was called a “virtual property” there by a court. The document states:
Bitcoin has the characteristics of a property – valuable, scarce and interchangeable. We should recognize it as a virtual property.
This recognition is positive according to many crypto-analysts. Earlier, FED chairman Jerome Powell called bitcoin a “speculative store of value” in a less positive context. Nevertheless, recent reports from high-ranking politicians and organizations are positive for the awareness and recognition of the cryptocurrency.