- Bitcoin, the world’s most valuable virtual currency by market value, rose by more than 10 percent Tuesday to $7,395.
- One cryptocurrency veteran said the rise in the price of bitcoin is due to technical levels.
- "The $6,800 level was massive resistance for three weeks and I think people were shorting against that and they just got their face ripped off," said Brian Kelly, CEO of BKCM.
Bitcoin jumped more than 10 percent Tuesday, breaking above the $7,000 level after weeks of steady but lower prices.
The world’s most valuable virtual currency moved sharply higher around 2:00 pm New York time to $7,465.79, its highest level since June 9th, according to Coinbase.
Cryptocurrency pundits said the price jump had more to do with technical levels than any other catalyst.
"The $6,800 level was massive resistance for three weeks and I think people were shorting against that and they just got their face ripped off," said Brian Kelly, CEO of BKCM.
Mark Newton, president and founder of Newton Advisors said technical patterns in recent days suggest bitcoin could continue up to $8,000, "without any real news helping out to explain why."
"We’re simply seeing some follow-through from recent progress in the last few days, and gradual basing out over the last month," Newton said.
"There have been a lot of positive catalysts this week, from Coinbase receiving approval to list security tokens, to BlackRock expressing their interest in crypto assets," said Joe DiPasquale, CEO of cryptocurrency fund of hedge funds BitBull Capital. "We are hopeful that the momentum will continue to build, and with it, institutions will finally break the ice en masse."
Bitcoin has struggled to regain footing after nearing $20,000 at the end of last year. The cryptocurrency has lost more than half its value in the first half of this year, according to data from Coinbase. The digital currency's total market capitalization has also fallen roughly 50 percent, with a current value of more than $125 billion, according to CoinMarketCap.