Bitcoin rallied to near all-time highs on Friday as three drivers are set to put the popular cryptocurrency into a new breakout rally.
First, investors are shifting back into Bitcoin after a two-month trading range centered on the $100,000 price level. That price level serves as a psychological resistance price given its round numbers.
The trading range served as what technical analysts refer to as a “healthy correction”. Any asset that spikes as high and as quickly as Bitcoin did following the election needs to either consolidate or correct. The fact that Bitcoin consolidated is a feature of the health of it’s long-term trend.
This post originally appeared at Money Morning.