Bitcoin gained more than 10% over the last week and continues its bullish ascent for a seventh day in a row. During the morning trading on Tuesday, the price has refreshed a 40-day high just below $9,300 and looks set for another leg higher. Earlier, the bull run has accelerated after a break above the $8,500 resistance.
The current dynamics may show that the industry has already gone through major concerns over regulation around the globe. If so, the market will look healthier and more stable going forward. The local factor which could bring the digital currency a relief as tax-related selling ahead of the U.S. tax deadline last week is over.
It looks like the cryptocurrency bull run is back. At least, technicals signal a substantial upside pressure over the last few days. A break above the 100-DMA around $9,100 also shows there is further growth potential in the short term, especially if we see a daily close above the psychologically important level $9,000. The next upside target is the $9,400 area which may turn out a rather strong local resistance.
By Helen Rush
Senior Analyst at Capital Markets