Bitcoin (BTC) gained a lot of attention on Friday of last week as the price surged from $44k to $48k in a few hours. The move was both fundamentally and technically backed and looks set to hold.
Crypto had sold off in recent weeks after fear of China banning these currencies. But two things happened that helped the Bitcoin price rise. Firstly, Venezuela released their digital currency, the digital bolivar (CBDC), which they had previously announced in August. Analysts believe the CBDC could be a temporary solution for the country, which is facing hyperinflation.
The second reason that helped the price rise was clarification from the US about their plans on regulations. After China had recently came out and banned Bitcoin, the US took the opposite stance. Fed chairman Jerome Powell was asked if he planned to “ban or limit the use of cryptocurrencies.” Powell’s answer was a resounding “no.” This clarification helped buyers step in and will help momentum for a further move up.
Technicals also helped the move up as the news helped the price break a heavy trend line (white line on chart). Trend lines often act as support or resistance for securities. The price has held $47k as support since the move up, but hasn’t found support above $49k.
For the upcoming days, a test of $50k, and ideally support at this price, would help Bitcoin and crypto gear up for another strong run. Getting above recent highs of $52.9k (top of trend line) is another target for the price.
Crypto as a whole sustained nice moved when Bitcoin rose. Ethereum (ETH) is up 10.5% since the move, whilst Cardano (ADA) is only up 3% after initially making 9.5%. It looks like this move for crypto benefitted the two largest cryptos, BTC and ETH, more than it had benefitted alt-coins such as ADA, DOGE and XRP.