Bitcoin climbed above $12,000 for the first time in more than a month, breaching a key level that chartists and technicians say might set the largest cryptocurrency up for further gains.
The digital token increased as much as 2.7% to $12,052 in New York on Tuesday, before retreating slightly from the high from the day. That’s Bitcoin’s highest level since Sept. 2.
“Before investors look to the next bull run, we need to see the price remain above $12,000 for an extended period of time,” said Simon Peters, analyst at investment platform eToro. “Then investors should look to $14,000 as the next target.”
Though Bitcoin’s remained volatile all year — often moving up when U.S. equities do and selling off during risk-off stretches — it’s been buoyed by a string of positive catalysts in recent weeks. Bulls cite greater institutional acceptance, for instance, with Fidelity Investments launching a Bitcoin fund and a couple of public companies investing in the coin.
“We see a significant increase in institutional players entering the crypto market,” said Eric Demuth, co-founder and chief executive officer of Bitpanda. “There is a lot of capital available that is not only going into the traditional financial market.”
This week, many crypto fans pointed to a panel hosted by the International Monetary Fund during which Federal Reserve Chairman Jerome Powell said the U.S. central bank is evaluating the costs and benefits of a digital currency.
Bitcoin last traded above $12,000 in September though it didn’t hold above that level for long. September was its worst month since March, with the coin losing more than 8%.
Though peer coins tend to move in tandem with Bitcoin, many fell during Tuesday’s session. Dash and Monero each lost about 4%.
This article was provided by Bloomberg News.