The price of Bitcoin (BTC) briefly rose above $80,000 U.S. as the rally in cryptocurrencies continues to strengthen.
Bitcoin rose as high as $80,995 U.S. in overnight trading before pulling back to $79,150 U.S. It was the first time that Bitcoin’s price had been above $80,000 U.S. since early May of this year.
The price of Bitcoin has now risen nearly 25% in the past week as investors rush back into the cryptocurrency trade that had been dormant since last autumn.
Analysts say that Bitcoin is now encountering resistance at $80,000 U.S., having broken above its previous resistance level at $65,000 U.S.
After hitting a record high of just over $126,000 U.S. last October, Bitcoin had endured a long “crypto winter” and been rangebound between $60,000 U.S. and $65,000 U.S. for months.
But now, Bitcoin and other digital assets are breaking out as investors respond to several catalysts for cryptocurrencies.
The rally was sparked by news that the U.S. Treasury Department is intervening in the bond market to lower yields, which is favourable to risk assets such as crypto.
At the same time, U.S. President Donald Trump has begun pressuring Congress to approve the Clarity Act legislation that would regulate the cryptocurrency sector.
Analysts seem to agree that Bitcoin needs to achieve a sustained breakout above $80,000 U.S. for the current rally to continue, and for the price of BTC to get back as high as $100,000 U.S.
Bitcoin’s new trading range appears to be between $74,000 U.S. and $80,000 U.S.
