Bitcoin rises to highest level for almost three months
By Rob Griffin
14:44, 10 August 2021
Bitcoin rose to its highest level in almost three months yesterday, after building on the solid gains made in recent weeks.
The cryptocurrency managed to hit $46,409.31 (£33,550.87) at one point during strong trading on Monday, before falling back a few hours later.
But although it was at $45,990.91 by Tuesday morning, it’s still 54% higher than the back end of July when it fell below $30,000.
Hunain Naseer, senior editor at OKEx, the cryptocurrency exchange, pointed out bitcoin had broken through two key resistance levels – $40,000 and $45,000.
Critical range
“The market leader now trades in a critical range, just above $45k,” he said. “If this trend continues, we are going to start seeing faster moving averages cross over slower ones – a bullish indicator for price.”
In fact, he believes it could go even higher by the end of this week. “However, it is likely that BTC will consolidate between $45k and $48k for a couple of days before attempting to breach $50k,” he said.
On the downside, however, he suggests a possible retest of support around $42k. “Even if that happens, the price is likely to bounce back towards $45k rather quickly,” he added.
What is your sentiment on BTC/USD?
Capitalise on gains
The news comes as research from money app Ziglu reveals that 39% of UK cryptocurrency investors have sold some holdings in the past 12 months to capitalise on their gains.
Just over one in five (22%) sold up to £500 of their cryptocurrency holdings, 8% sold between £500 and £1,000, and 9% sold even more.
After selling their holdings, 55% said that they then bought more cryptocurrencies, while 36% said they didn’t purchase any more.
Valuation increases
Mark Hipperson, Ziglu’s founder and chief executive, pointed out that cryptocurrencies can be volatile – as has been seen by the valuation increases in the past year.
“As with any investment, it is often sensible to realise some gains – even if this is a matter of holding the profit as cash ready to reinvest,” he said.
Trade Bitcoin Cash to US Dollar – BCH/USD CFD
Read more: How to trade Bitcoin
Related topics