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Thursday, Aug 13, 2020

Bitcoin Briefly Jumps Above $10,000 for First Time in Six Weeks

Bitcoin Briefly Jumps Above $10,000 for First Time in Six Weeks

The largest cryptocurrency spiked into five digits around 6 a.m. New York time on Sunday --- rising as high as $10,169, according to pricing compiled by Bloomberg. But it didn’t stay there long, falling back into the $9,000s about 10 minutes later, bouncing around for a while and then paring gains more decisively. It was up 2.2% to $9,941 as of 12:15 p.m.
Bitcoin, which crypto fans have often touted as “digital gold,” is in favor as the yellow metal nears record levels, concerns rise about the health of the world economy and the dollar falls. Also, last week, the U.S. Office of the Comptroller of the Currency said American banks can provide custody services for customers’ crypto assets, which could help boost the asset class’s appeal with some investors.

The cryptocurrency had been hovering near its 50-day moving average for weeks before pulling above it in the past couple of days.

“We remain positive on the overall precise structure for Bitcoin and do expect it push through $10,000-$10,500 as part of its longer term bullish technical profile,” said Rob Sluymer, technical strategist at Fundstrat Global Advisors LLC. Even so, that range “remains a resistance band that Bitcoin will need to break above to signal its next move to resistance at $13,800.”

Bitcoin has enjoyed above-average flows this year, and those flows are relatively high versus their five-year average when compared with those of exchange traded funds in other asset classes, according to a report from JPMorgan Chase & Co. strategist John Normand on Friday.
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