Bitcoin is less than $400 from touching $112,000 and a fresh record high for the first time. It almost touched that level in May before stalling out and backing off to $98,000 in late June.
However the risk trade has notably improved lately and with Nvidia hitting a record high today, the bitcoin bulls have come out of hibernation. The quick $2000 move higher is a great sign for risk assets in general.
As for bitcoin, it’s blue skies technically if it can break above $112,000. Moreover, the consolidation essentially since December when it hit $103K for the first time has built a healthy base at a high plateau. I wouldn’t think that a push to as high as $140,000 is out of the question, particularly if we get that dovish pivot from the Fed, continued Nasdaq gains and a soft US dollar.
This article was written by Adam Button at www.forexlive.com.