Trade idea of the day: Can Bitcoin take $10,000?

Bitcoin has surged to its highest level in over a month, hitting a high of $9293.66 on Tuesday morning. This is the highest level that Bitcoin has traded at since mid March as the crypto currency rebounds from its worst first quarter ever, which saw it fall 48%.

Bitcoin has surged to its highest level in over a month, hitting a high of $9293.66 on Tuesday morning. This is the highest level that Bitcoin has traded at since mid March as the crypto currency rebounds from its worst first quarter ever, which saw it fall 48%.

As we saw in 2017, as the price of Bitcoin increases so does the media interest. Last year media interest and fear of missing out pushed the price of Bitcoin to almost $20,000, before it tumbled to a low in February of $6000. 

Today Bitcoin pushed above $9000, rising by more than a third in value in recent weeks as rumour circulate that more institutional investors are buying in. Buy orders for Bitcoin currently compose 92% of market activity according to Cryptoslate. 

Buy orders were last this high back in March 2017 when Bitcoin was valued at $1000 and just before its historical rally exploded into action.

A large proportion of the losses seen in the first quarter for Bitcoin have been attributed to increased regulatory scrutiny from governments and watchdogs. However, this isn’t necessarily all bad news. Whilst there are on going concerns of increased regulation, these concerns are easing. 

Furthermore is the concerns over increased regulation are addressed then buying pressure could in fact ramp up. Increased regulation could even help the currency go mainstream.

Today’s rebound has also been linked to US tax day. The price is seen rebounding after investors had been selling out of their investment in order to cover tax bills . US citizens reportedly owed the IRS $25 billion in taxes for their crypto currency holdings. 

With the bills now covered, market participants can once again focus on investing.

Bitcoin is up 15% over the past week and up 30% since 8th April. Such huge swings aren’t altogether uncommon for Bitcoin, but the bulls are certainly getting excited that they could be taking control once more. 

Now that bitcoin has moved through $9000, the big test will be whether it can take on the psychological level of $10,000. On the hourly chart, technical indicators and moving averages are all pointing towards bullish momentum. 

A convincing move beyond $10,000 could see Bitcoin bulls back in the driving seat taking the focus to $12,000.

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