Following yesterday’s jump, bitcoin is trading with a bullish bias on Friday, with the $10,000 psychological level back in play. The price is back to mid-March highs around $9,800, but the buyers still hesitate to challenge the key barrier.
The latest wave of optimism in the cryptocurrency markets was due to Goldman’s announcement - one of the most well-known investment banks plans to trade bitcoin futures contracts. The news inspired the market participants amid expectations that other large institutions could follow Goldman’s example in the future. Moreover, the announcement was taken as another sign of bitcoin acceptance among institutional investors and the digital currencies becoming more mainstream and popular on the whole.
The recent ascent added to the positive technical picture, but the bulls may need some more time to test the key $10,000 barrier. A break above will open the way to fresh tops at $12,000 and higher. But to make the current bullishness sustained, the industry may need some more incentives and catalysts. Should traders proceed to a local profit taking in the short term, the immediate support comes just below the $9,500 mark.
By Helen Rush
Senior Analyst at Capital Markets