- Market rebounds after a US representative Patrick McHenry showered Bitcoin with praises.
- Bitcoin unlikely to break above $10,000 on Thursday but strongly supported above $10,000.
Bitcoin did not just rise above $10,000, the largest cryptocurrency broke above a second key hurdle at $10,500. The recovery comes after Bitcoin descended to lows at $9,000. An initial attempt at recovery stalled at $10,000 but in its second assault, BTC/USD impressively rose to highs around $10,694.
The rebound in Bitcoin price comes after a US representative Patrick McHenry showered Bitcoin with praises during the much-hyped Facebook Inc.’s hearing regarding Libra. McHenry said that Bitcoin was unstoppable and that corporations like Facebook are only trying to copy what Bitcoin has succeeded doing already.
“I think there’s no capacity to kill Bitcoin. Even the Chinese, with their firewall and their extreme intervention in their society could not kill Bitcoin,” McHenry said.
He also added:
“The essence of Bitcoin is what Libra and Facebook, and corporates are trying to mimic.”
Meanwhile, Bitcoin is trading at $10,541 after correcting higher 8.5% on the day. Technicals indicate the capacity for higher movements, however, it very unlikely that we Bitcoin will break above $11,000 today. On the downside, support will be provided by the moving averages starting with the 100 Exponential Moving Average (EMA) and the 100 Simple Moving Average (SMA). Other key support areas to look out for in the near-term are $10,000, the 50 SMA 1-h, $9,500 and $9,000.
BTC/USD 1-h chart