The Bitcoin price (BTC/USD) has seemingly managed to establish a stable position above $4,000 following a strong Wednesday session that saw a big crypto resurgence.
Having spent days struggling below the $4,000 mark, the original cryptocurrency finally caught a break on Wednesday, as its price rallied to a four-day high. The digital coin spent most of the session moving on an upward trajectory, which allowed it to make a decisive break above $4,000. The coin rose by as much as 14.7% to hit an intraday high of $4,385.90 in late trading. BTC’s rally came to a halt in the final hours of the session and the coin pulled back to a close of $4,257.42. Still, this was significantly higher than Bitcoin’s opening level of $3,822.47 and it was the coin’s highest close since November 23.
While Bitcoin had a slow start to today’s session, with its price falling to as low as $4,145.77 in early trading, it has managed to defend and even extend its gains in subsequent trading. Thanks to a recent price jump, Bitcoin has been able to retake the $4,300 mark and is currently trading at around $4,350.
The resurgence has been felt across the wider cryptocurrency market, with most major coins having posted big gains on Wednesday. According to Andy Bromberg, co-founder and president of CoinList, the rally may be a reaction to a bear market gone too far.
“Today’s rise is mostly a reaction to the precipitous drops last week and people thinking that may have been an overreaction,” Bromberg said, as quoted by CNBC.
Meanwhile, Brian Kelly, chief executive officer of BKCM, thinks that the rally may have been partly driven by the drama around Bitcoin Cash’s November 15 split finally coming to an end.
“You’re seeing the bitcoin cash saga play itself out,” Kelly told CNBC. “People were funding a lot of that by selling bitcoin, so one element of sellers has left the market.”
In today’s trading, the Bitcoin price stood at $4,358.26, as of 10:06 GMT. The digital coin has gained 8.3% in the past 24 hours, according to data from digital currency tracker Coinmarketcap.
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