Yesterday, we saw an incredible spike in Bitcoin of close to $2500, which is 40+% move.
Even though price has corrected slightly, it is currently still up by about 30% from its recent lows.
Although no one really knows the reason for such a sudden move, many people have attributed it to remarks by the Chinese President, Xi Jinping, who said the country needs to “seize the opportunity” afforded by blockchain technology.
Speaking as part of the 18th collective study of the Political Bureau of the Central Committee on Thursday in Beijing, he said that blockchain technology has a wide array of applications within China, listing topics ranging from financing businesses to mass transit and poverty alleviation.
Although he was talking about Blockchain technology rather than cryptocurrencies, traders seem to have felt that it would still have a positive effect, at least based on what the market is reflecting.
For a technical perspective, the chart is starting to look more bullish medium/long-term, with the breakout of the falling wedge pattern.