Bitcoin Extends Rebound With Chartists Eyeing Bullish Technicals

Bitcoin is hanging tough amid a slew of negative headlines, extending its rally for the third day and lifting the spirit of battered bulls. The largest cryptocurrency has rallied above its average price over the past 20 days, a positive indication for advocates who were looking for the digital token to reclaim its upward momentum. Bitcoin gained as much as 5% to $36,422 Tuesday in New York trading.

For many chartists, the next key level to watch is the 50-day moving average, which currently sits around $38,221. Should Bitcoin meaningfully break out above it, it could rally toward $40,000 again. “Although we might be in for a few choppy months ahead we remain long-term very bullish in the sector and have no doubt that the market will recover quicker than most expect,” said Paul Barroso, chief executive and co-founder of Atani, a crypto trading platform. “Fundamentals remain very strong.”

The coin is rallying even in the wake of news that Binance Markets Ltd., an affiliate of top global crypto exchange Binance, was banned Sunday by the U.K. financial watchdog from doing any regulated business in the country. And Huobi, one of the most popular cryptocurrency platforms in China, said Monday that users in the country are prohibited from trading derivatives.

Meanwhile, there are signs retail investors remain interested, according to Joel Edgerton, chief operating officer of bitFlyer USA. Buying volume has represented roughly 70% of total retail volume on his platform last week, he said in emailed comments, and more than 90% of transactions were buy orders. In addition, Edgerton is seeing an influx of new customers creating bitFlyer accounts.

Bitcoin Extends Rebound With Chartists Eyeing Bullish Technicals, Bloomberg, Jun 30