For the first time in weeks, Bitcoin has finally escaped the claws of the bear market and broken the crucial psychological barrier of $7,000.
The move is a significant indication that buyers are returning to the market, with the gap between short and long positions slowly closing. A report from the U.S. Commodity Futures Trading Commission (CFTC) shows that the net position on bitcoin futures has decreased by 1,266.
Not only did it break $7,000 but the price of BTC also closed above the 200-period exponential moving average (EMA), which hasn’t happened since early August.
Analysts predicted resistance at $6,800 but an influx of buyers managed to break resistance and instigate enough momentum to push through $7,000 at around 14:00 UTC today. Considering the breakout was unexpected we may well see a strong correction in the next few days, with new bearish predictions suggesting support at $6,750.
However, recent news regarding cryptocurrencies has been uncharacteristically positive so further positive movement is just as likely. Since we are now outside of projected trajectory it’s difficult to forecast future movements but a path above $7,500 or even towards $8,000 would not be surprising.
Other major cryptocurrencies are also enjoying positive upward movement today, with XRP, Stellar (XLM), Litecoin (LTC) and Cardano (ADA) up six percent and Ethereum (ETH), Bitcoin Cash (BCH) and EOS each up four percent.
The best earners of the day, however, are the smaller altcoins Dash, Tron, IOTA, and NEO- all up by over 14 percent each.
