As the key rising trend line support now
successfully defended, the bitcoin-US dollar (BTC/USD) exchange rate is above the $4,000 mark today.
The cryptocurrency that control the world’s largest blockchain is trading at $4,070, up 3% currently. However, on a monthly basis it is still having 6% loss.
So, investors are trying to ignore news out of China that shows at least one major domestic bitcoin exchange has followed regulation to stop yuan trading.
The speculation is gathering pace that a some of miners and developers perform a planned fork of the blockchain in the next 30 days. This might lead to the creation of bitcoin gold, new network, and that would give new cryptocurrency to all bitcoin holders.
Anyway, investors are at relieve except the rumors about another hard fork. The price action analysis suggests bright future for the cryptocurrency, although the last obstacle needs to be clear.
With the point above $4,000 adding confidence to the bullish setup, the break above the 50-day moving average level of $4,123 would be great now.
This would cement expectations of a rally to record highs.
On the other hand, only an end of the day close below $3,880 would change the bullish view.