Bitcoin jumps above US$10,000 for the first time in six weeks

[SINGAPORE] The largest cryptocurrency spiked into five digits around 6am New York time on Sunday - rising as high as US$10,169, according to pricing compiled by Bloomberg. The gains quickly fizzled, initially, then rallied again later, gaining 1.9 per cent to US$10,080 as of 9.25pm.

Bitcoin, which crypto fans have often touted as "digital gold", is in favour as the yellow metal nears record levels, concerns rise about the health of the world economy and the US dollar falls. Also, last week, the US Office of the Comptroller of the Currency said American banks can provide custody services for customers' crypto assets, which could help boost the asset class's appeal with some investors.

The cryptocurrency had been hovering near its 50-day moving average for weeks before pulling above it in the past couple of days.

"We remain positive on the overall precise structure for Bitcoin and do expect it push through US$10,000-US$10,500 as part of its longer term bullish technical profile," said Rob Sluymer, technical strategist at Fundstrat Global Advisors. Even so, that range "remains a resistance band that Bitcoin will need to break above to signal its next move to resistance at US$13,800".

Bitcoin has enjoyed above-average flows this year, and those flows are relatively high versus their five-year average when compared with those of exchange traded funds in other asset classes, according to a report from JPMorgan Chase & Co strategist John Normand on Friday.

BLOOMBERG

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