Bitcoin staged a powerful rally Thursday morning, climbing to a double-digit percentage gain in less than 30 minutes, with market participants unclear about the impetus for the unexpected jump. The value of a single bitcoin reached an intraday peak at $8,055.20, representing a roughly 16% pop in a short period, according to research and data site CoinDesk.com. Most recently, the No. 1 cryptocurrency was up about 12% at $7,788.03. The rally for bitcoin comes after a prolonged period of low volatility where the currency was stuck in a $1,000 range, Thursday’s move marks the largest price swing since Feb. 6, when bitcoin bounced off its record low of $5,947.40 to close at $7,700.39.
The RSI is pulling from the oversold levels to signal that there is a presence of high buying pressure and the bounce might continue towards the coveted $8,000 level. The upside gains were initiated close to $6,823, although the price was more like a sitting duck ready to be attacked by either the buyers or the sellers.
BTC/USD is trading above both the short term 100 SMA and the longer term 200 SMA which will act as immediate support levels in case of a trend reversal to the downside. The MACD is dipping further into the positive region to indicate that the bullish momentum above $7,750 will continue in the near-term. The current break out cannot be explained at the time of publishing this article. However, we will continue to monitor and update as the developments come along.