Bitcoin (BTC) is continuing its July rally, touching a high of $7,770.08 on Monday as its price heads towards the $8,000 mark. The cryptocurrency was trading just below $6,000 as June was drawing to a close, but has rallied over 30% since.
“In the long-run all of these points are very bullish,” said Mark Newton, an analyst at eToro. “Technically, on the charts, what happened last week was very positive, but getting through these levels will be critical in the short term action.”
From a technical analysis perspective, Newton is specifically watching any areas of price resistance near the $8,000 mark. Until it breaks that price barrier, Newton stated it’s difficult to “make too much of this as being a move that would start to lead us meaningfully higher.”
The leading digital currency caught a gust of wind when news broke that global investment giant BlackRock was assembling a working group that is testing opportunities within the cryptocurrency space and blockchain technology, which drives cryptocurrencies.
Related: BlackRock is Looking at Entry Into Crypto Space
“The $6.3tn investment powerhouse has created a team from different parts of the business to investigate cryptocurrencies and their underlying infrastructure, blockchain, according to two people familiar with the matter,” reports Financial News.
Other positive news affecting BTC is the possible inclusion of five cryptocurrencies by Coinbase, the operator of one of the largest cryptocurrency exchanges–Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC), and 0x (ZRX). In addition, Grayscale Investments LLC, an asset manager of almost $2 billion that specializes in cryptocurrency funds, reported that institutional investors are giving Bitcoin and other cryptocurrencies a closer look.
“This will truly be the ‘line in the sand’ so to speak as to whether BTC can begin a larger rally, or whether this will still take some time,” said Newton.
Despite the recent bull run by Bitcoin, the cryptocurrency is still down over 60 percent from its all-time high when it was trading around $20,000 in December of 2017. A mix of global news regarding cryptocurrency theft, fraud and manipulation have put downward pressure on prices.
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