Bitcoin rallied above $4,000 today, leading the broad cryptocurrency market higher as the biggest digital asset headed for its best week in a year. The token has gained more than 28% since Monday, on course for the largest weekly advance since the peak of the crypto craze in December 2017. Other cryptocurrencies including Ethereum and Litecoin also jumped, and the Bloomberg Galaxy Crypto Index is up more than a third this week.
Analysts who watch chart patterns for hints on future price direction had said this year’s sell-off may have gone to far. Bitcoin plunged through a long-term support at $6,000 in November, taking its losses for the year to more than 80 percent. Yet momentum indicators, including the relative strength index and the GTI VERA Convergence Divergence Indicator, suggested that near-term prices could climb.
The world’s most valuable cryptocurrency has been hit hard this year, falling around 80% from a record high last December on concerns of increased regulatory scrutiny.
Bitcoin and other cryptocurrencies have been mauled in recent months, with analysts citing increased US regulatory scrutiny and a delay to January 2019 of the widely-anticipated launch of bitcoin futures by Bakkt, Intercontinental Exchange’s crypto platform have fuelled the downturn.