Bitcoin prices ripped higher by about 9.5 percent over the past 24 hours, taking the cryptocurrency’s one-week gains to around 14 percent. It’s been a tough year for bitcoin investors, but this week's rally may have pushed the crypto above a key resistance level.
Bitcoin’s 50-day simple moving average currently rests at around $6,700. After trading below that key technical level for more than a month, bitcoin finally pushed above $6,700 in the past 24 hours and is currently trading at around $7,305.
The chart included below from Coindesk highlights a potential bullish invested head and shoulders pattern that has formed in bitcoin’s chart over the past month. Inverted head and shoulders patterns can be indications of a market bottom, and bitcoin investors are hoping badly that's the case after the crypto lost more than half its value in the first half of 2018.
In addition to the potential technical breakout, reports of mainstream institutional interest from the likes of BlackRock, Inc. (NYSE: BLK) and Goldman Sachs Group Inc (NYSE: GS) have some traders speculating that institutional investment could trigger the next great rally in the cryptocurrency space.
It may now be clear sailing for the "king of coins." According to FX Street $6,700 was major resistance, and the big follow-through confirms Tuesday’s breakout. Coindesk notes a convincing move above $6,838 would be indicative of a bullish reversal, and bitcoin prices certainly breached $6,838 on Tuesday.
At time of publication, bitcoin was trading around $7,308. Other cryptocurrencies like Ethereum (up 5 percent), Litecoin (7 percent) and XRP (7.6 percent) also saw strong moves. In addition, bitcoin-related stocks like Riot Blockchain (NASDAQ: RIOT) saw huge moves in Tuesday's session. Riot Blockchain closed higher by 37 percent after falling nearly 80 percent year-to-date.
The Bitcoin Investment Trust (OTC: GBTC) traded higher by 10.8 percent on Tuesday, but remains down 48.6 percent year-to-date.
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