Bitcoin [BTC] has broken out of the limits that it has been trading at for the past few weeks and broke $7000 earlier today. This marks the breach of a key level for the trading of the top cryptocurrency, as it had not fully recovered from the fall that it had earlier this month.
This also comes at a point where Bitcoin’s dominance over the market is over 50%, leading many to believe that a capitulation is coming. With a current market dominance of 53%, Bitcoin controls $121 billion of the $228 billion cryptocurrency market.
The coin began trading last week at around the $6400 mark, continuing its trend of bouncing between the $6300 and $6700 levels after the crash on 8th August.
It saw a spike up to $6800 on 22nd August, from its price of $6400, and fell back down to $6400 on the very same day. This also coincided with the news of BitMEX shutting down for maintenance and experiencing a DDoS attack, leading to many traders losing their money due to the liquidation of short contracts on the platform.
The coin also demonstrated a slow rally to over $6700 from 22nd August to 25th August, where it traded around the $6700 mark before dropping down to $6400 on 26th. It continued its bouncing motion as it rallied back to $6700 earlier today. However, the coin continued its rally with a 3% growth to over $6900, where it traded for the first half of the day.
The price of Bitcoin broke $7000 at around 12 PM UTC and is currently trading above the level with a current price of $7032. This will come as a breath of fresh air for investors who are discouraged by negative news of the United States Securities and Exchanges Commission continuing to reject proposals for an Exchange-Traded Fund based on Bitcoin. Even as the market saw ETFs being delayed, rejected and then taken under review again, it maintained a resilient position.
Iairus Germund, a market analyst, stated:
“The break of the $7000 limit will also enable a psychological buy feeling in the investor. While retail investor sentiment still rules the day due to decreased proliferation of institutional investors in the market, a steady run between $6300 and $6700 post the August 8th drop demonstrates remarkable levels of low volatility.”
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