Bitcoin prices bounced back today, rising more than 10% in a matter of hours after declining to their lowest in more than seven months.
The digital currency climbed to as much as $7,217.01 at roughly 3:30 EST, CoinDesk figures show.
At this point, the cryptocurrency was up 12.3% from the seven-month low of $6,427.96 it reached this morning, additional CoinDesk data reveals.
[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.]
Technical Price Movements
Some analysts described today’s rally as being purely technical in nature.
“It’s simply a rebound after taking out the prior low at 6618,” said Tim Enneking, managing director of Digital Capital Management.
He emphasized that after bitcoin fell through that level, it “saw the near-record 42% jump in 24 hours, all of which has been given back and then some.”
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, also pointed to technical factors when explaining bitcoin’s recent rally.
He predicted earlier this week that “if BTC price stays under $6,800 for a while, it is likely to drop to $6,400 and $6,200. However, Bitcoin will be severely oversold if this drop happens very fast and will result in a temporary bounce back.”
After today’s price fluctuations, he stated that:
“Bitcoin fell as low as $6,430 before a quick bounce-back took it all the way to $7,210, where it faced resistance and triggered selling.”
“From here, the price recovery is expected to lose steam, with the first resistance at $7,500 and a bigger one at $8,000,” he noted.
While DiPasquale spoke to the digital currency’s recent rally, Enneking noted that bitcoin is “probably going to put in new lows before” enjoying “a sustained recovery.”
Disclosure: I own some bitcoin,…