Bitcoin is continuing to march higher as it jumped back above the $10,000 threshold and now aims for the next psychological target of $11,000. The digital currency spiked 4.5% on the day, having already recouped last week’s losses.
The cryptocurrency market remains rather volatile, but the range of fluctuations is gradually narrowing, which tends to attract more buyers. Another positive development in the market is a more restraint reaction to the regulatory news. The latest example of this is the latest mute response from digital assets to the comments from the EU financial service commissioner Valdis Dombrovskis who noted that the EU stands ready to regulate cryptocurrencies and could draft new legislation in months to come. All this seem to indicate the industry is getting more stable and steady.
Keeping in mind the December events in the cryptocurrency market, investors do not rush into crazy buying and prefer to trade bitcoin in a narrower range. Still, there are still risks of more abrupt moves as more and more traders return to the market. In the short term, the digital currency needs to keep above the $10,000 mark so that to retest the local resistance at $10,800 which in turn will open the way to $11,000.
By Helen Rush
Senior Analyst at Capital Markets