Bitcoin climbs to $8300
Trading Bitcoin is the epitome of fear and greed.
At the height of yesteday's selling it hit $5922 but found support at the November low of $5605 and it has absolutely ripped higher since, touching $8608 a short time ago before drifting back to $8300.
The 70% peak to trough decline yesterday took place over 51 days. It ranks as the fourth worst percentage point loss in Bitcoin history (excluding the early days where it traded below $1). However it was easily the quickest of those four. Even for those buying and hoping for rip here, history isn't kind -- all the others -70% declines took at least 200 days before hitting a new high, and as long as three years.
Still, there is room for optimism after the technical bounce from support at $5606. The January low of $9185, however, might prove to be a challenging resistance level.
On the fundamental side, there was nothing particularly damaging for Bitcoin in yesterday's testimony from the SEC and CFTC at a Senate hearing and there was some upbeat talk about blockchain technology.
A Goldman Sachs note is also doing the rounds and it says be prepared for most cryptocurrencies to lose all their value.
"Most, if not all, will never see their recent peaks again," wrote analyst Steve Strongin. He said current cryptocurrencies lack long-term staying power because of slow transaction times, security challenges and high maintenance costs.
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