Bitcoin, the world’s most prominent digital currency, has been logging some serious gains today as upward movement helps fuel FOMO (fear of missing out).
The cryptocurrency reached as much as $8,762.68 around 1:20 EDT, according to CoinDesk.
At this point, bitcoin had spiked more than 18% from its intra-day low of 7,393.26 reached earlier today, additional CoinDesk figures show.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
The digital currency experienced this sharp rally after Xi Jinping, president of the People’s Republic of China, stated earlier today that his country should “seize the opportunity” offered by blockchain technology.
Bitcoin prices began climbing after he provided these remarks, and but intensified their ascent as market factors drove the digital currency higher.
The cryptocurrency enjoyed these gains after a period where many investors had been watching the markets for the possibility of a Death Cross, a bearish formation that takes place when the 50-day moving average falls below the 200-day moving average.
“China’s endorsement of blockchain technology helped Bitcoin recover, and along the way, a short squeeze helped push prices even higher,” said Joe DiPasquale, BitBull Capital’s CEO.
“The death cross has, for now, been averted, since the 50-day and 200-day moving averages have not yet crossed,” he stated.
“That being said, Bitcoin still needs to cross $9,000 to get out of the danger zone,” added DiPasquale, emphasizing that while the digital currency has “recovered,” it “remains under the major resistance zone between $8,700 and $9,000.”
Unless bitcoin can break through this area of resistance, the cryptocurrency will “likely” “fall back,” he stated.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.