NEW YORK. Changes in overall risk sentiment, cryptocurrency surged. Bitcoin was at US $ 7,612.75 on Sunday (4/26). The price increase is above US $ 7,500 for the first time since it fell in early March.
Bitcoin fell 27% on March 12 as financial markets were hit by the corona virus pandemic. Ed Moya, Market Analyst at Oanda Corp said, trading tokens near this peak will create new momentum to break above the level of US $ 8,000.
“Bitcoin is starting to attract retail interest again,” Moya wrote in a study as quoted by Bloomberg . With stimulus efforts around the world some traders jumped into crypto as a hedge against currency wars.
Cryptocurrency has moved a lot along with risk assets over the past month which fell when the equity market was under pressure. Stock prices also rose on Thursday because optimism for the US economy will improve and oil rally again.
Technically Moya said, bitcoin must break above US $ 8,000 to start traveling at a higher price. Technical indicators show the Relative Strength Index (RSI) at 59, and have not yet entered overbought territory .
Assets are considered overbought if the RSI exceeds 70. Redeeming prices could mean that bitcoin drops to US $ 6,500. “Bitcoin seems to be testing the previous resistance zone around the US $ 7,500 level,” said Denis Vinokourov, Head of Research at Bequant, a digital asset company based in London. He said, this significant bullish bias pushed to become a lever again.