Bitcoin gained 20 percent last week and then a months-high on Tuesday, although the price is below half of its December high of $20,000. A new resistance price of $12,000 is predicted.
Bitcoin gained around 20 percent in the last week and was trading above $9,400. This is its highest level in months of sell-off. Bitcoin is just starting to recover from a 48 percent loss of value in three months.
It is also a rebound from Tax-Day fears when many sold to avoid huge taxation of their holdings. Again, it signifies some recovery from increased regulatory scrutiny and the banning of cryptocurrency ads by various companies including Google, Facebook, and Twitter.
Founder and CEO of BKCM predicted on Tuesday that Bitcoin will reach a new resistance of $12,000. He also recently echoed statements by venture capitalist Tim Draper that Bitcoin will hit $250,000 within four years.
A partner at Blockchain Capital Spencer Bogart said Bitcoin is appealing for investors selling on the macroeconomic news this week.
This is even as other markets moved in the opposite direction as of Tuesday. This is due to increasing interest rates and comments from a conference call by Caterpillar.
At the same time, Dow Jones industrial average dropped 400 points, representing a more than a 750 points drop from its session high to lows during the day. S&P 500 dropped by 1.3 percent while Nasdaq composite fell by 1.7 percent.
Other cryptocurrencies follow suit
Other cryptocurrencies in the top ten list by market cap echoed the same trend. They traded higher on Tuesday. Ethereum, for instance, rose 10 percent and Ripple was up by more than 7 percent.
Further, prices for Bitcoin Cash jumped up on April 24 after BitPay announced that it will allow brick-and-mortar businesses to use Bitcoin Cash for payments. Already available to Bitcoin users, the service will allow people to choose between BTC or BCH payment methods. The cryptocurrency gained by almost 19% after BitPay’s announcement.
Image Source: Bitcoin Price