Why is the price of Bitcoin surging above $8,000 and is there a cryptocurrency comeback?

The price of Bitcoin has soared above $8,000 to its highest level in two months.

This year has been dreadful for cryptocurrency traders, who watched as Bitcoin plummeted from almost $20,000 in December 2017 to reach a low of about $5,800.

But Bitcoin rose above $8,100 on Tuesday to its highest level in two months, prompted by recent reports about impending approval in the United States for a ‘cryptocurrency exchange-traded fund’ which will make it much easier for people to invest in virtual markets.

Experts believe a recovery could be on the way after a dreadful year for the world’s top cryptocurrency

Matthew Newton, analyst at eToro, a global investment platform, said ‘bulls’ are back in the market.

A bull is someone who buys stocks in the hope of selling them for a profit at a later date.

‘The bulls seem to be maintaining the upper hand, after a significant shift in the price pattern last week,’ Newton said.

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‘The short squeeze on the market that occurred after the pattern completed, caused some concern that we were seeing a repeat of what happened in April, when bitcoin failed to break $10k.

‘By soaring past those key barriers of resistance, it would seem history is not repeating itself and there’s real strength in the move. If bitcoin can close above $8,000 today, we could assume that we may have a good run toward $10,000.’

Jordan Hiscott, chief trader at Ayondo markets told The Express that the price rise showed ‘green shoots’ were growing in the market and said Bitcoin could reach $9,200 very soon.

He said: ‘The plethora of negative news, both on a macro and micro level, seems to have reached a crescendo and I would argue has even started to dissipate.

‘From the micro perspective, the setup from the chart of some of the dominant cryptocurrencies, like Bitcoin, has certainly stabilised and formed a support base.’


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