Bitcoin is currently trading above $7,000 as the cryptocurrency continues its remarkable price rally in 2019.
The digital currency’s stunning comeback has seen it jump from lows of $3,500 earlier in the year to above $7,600 last week. Currently, the cryptocurrency is trading at $7,320 and is over 2% up on the day,
Although the cryptocurrency fell slightly during trading in the morning, a strong rebound in European trading hours has its hold above the $7,000 price level.
With the price of BTC hovering above $7k, the world’s leading cryptocurrency has now rallied nearly 90% since the turn of the year.
The rally comes at a time the crypto market has hit a series of negative headlines, especially around Bitfinex and the probe surrounding its $850 million funds borrowed from Tether Limited. The cryptocurrency ecosystem was also shocked last week when major crypto exchange platform Binance was reportedly hacked and bitcoin worth $41 million stolen.
According to social trading platform eToro’s Mati Greenspan, bitcoin has over the last several months build momentum. The digital asset platform appeared to have hit its bottom in December, and analysts say the coin is likely to soar even further.
The main reasoning is that the virtual currency is embarking on a cycle that could see it move towards the $20,000 it reached in December 2017.
Since hitting that level, bitcoin slumped massively and saw its value dip by over 75%. But it is seeing huge interest as traders continue to buy in anticipation of further growth.
Over the last 24 hours, bitcoin has shown its wild volatility, dropping significantly from around $7,600 to just above $7,000. The retracement followed the virtual currency’s spectacular rise that saw it gain by 25% in little under a week.
Analysts say that the minor retracement was anticipated given the sharp rise that saw BTC prices surge from below $5k to close in on $8k in less than a month.