Why Bitcoin's Rally Has More Gas in the Tank

From its December peak around $20,000 to its most recent trough seen earlier this year, bitcoin slumped 60%, but the largest digital currency has rebounded nicely in recent weeks. Bitcoin prices broke through the $9,300 level Tuesday and some market observers believe the digital currency can continue marching to $10,000.

Bitcoin’s rally above $8,000 and now $9,000 comes just a couple of weeks after the cryptocurrency committed a death cross, where its 200-day moving average fell below its 50-day line. The death cross is normally bearish, but it needs to be validated, something bitcoin did not do.

“After the Feb. 5 low, Blue Line Futures President Bill Baruch told CNBC’s “Trading Nation” he saw a move up back up to $10,000. At that time, bitcoin was trading around $7,200. Tuesday morning, bitcoin was trading above $9,200, representing roughly 28 percent upside since that time,” reports CNBC.

Related: Bitcoin Rally Eyes $10,000 Level

Recently, the Bitcoin Dominance Index has been rising, confirming the dominant perch of the cryptocurrency. After bitcoin, the largest cryptocurrencies are Ethereum, Ripple, Bitcoin Cash and Litecoin.

More Bitcoin Upside in the Cards?

Recently, some big-name investors, including George Soros and the Rockefeller family, signaled their interest in blockchain technology and cryptocurrenices. That against a backdrop of potentially favorable seasonality.