Bitcoin has shot up in price by almost $300 today, seeing a rise of more than 4% and climbing back to the $6,600 level. With bitcoin going up, the overall cryptocurrency market is also seeing some good gains over the past two days. Most altcoins are up between 5-10% today alone. Bullish times ahead!
Today’s rise came shortly after the news that investment firm BlackRock is looking to move into the cryptocurrency space. BlackRock, a $6.3 trillion asset management heavyweight, is the world’s largest provider of exchange-traded-funds (ETF). According to the news, BlackRock has set up a working group to investigate cryptocurrencies and their underlying blockchain technology.
A bullish optimism already crept into the cryptocurrency market last week after the news came out that The United States Securities and Exchange Commission (SEC) is currently examining an application from the Chicago Board Options Exchange (CBOE) Global Markets to grant the company a coveted bitcoin ETF license. The potential Bitcoin ETF license, if approved, is expected to bring new waves of institutional investors to the Bitcoin arena. The bullish optimism, in combination with the BlackRock news, most likely played a big part in today’s rise of the market.
Also, today rise shows once more how volatile the cryptocurrency market is and how fast things can change. Bearish signals were dominating last weekend when the cryptocurrency market was seeing losses across the board after the top cryptocurrency values had dropped by 10-20 percent. Luckily, over the course of the week, the market saw a positive correction, regaining at least 2/3rds of the losses the week before.
As can be seen in the chart above, Bitcoin started its corrective rally at $6,350 this morning, climbing fast to $6,500 and reaching $6,600 soon after. Currently, Bitcoin is facing some resistance at $6,700. If resistance can be broken, this can most likely send bitcoin to the $6,800 region, which if achieved, opens the possibility for a climb up to $7,000. Still, heave resistance is also expected between $6,800 and $7,000.
The market rise of today has the potential to reverse the negative momentum that has prevailed in the market during the past month. With almost all of the top 100 coins on CoinMarketCap trading in the green, the market is showing that bulls are still there and are ready for a run. The upcoming days will show if the positive trend can be continued and if Bitcoin, and the overall market, can be pushed to higher levels.