Bitcoin rose back to over the $11,000 level on Monday.
The cryptocurrency is currently trading at $11,063, up 6.41% from its opening price of $10,396, according to data from Coindesk.
Bitcoin’s market cap increased to $0.187 trillion, with 16,874,738 coins of the digital currency in circulation.
It has rallied from its Feb. 6 low of $5,947.40.
Bitcoin broke a resistance level of $10,000 on Feb. 16, creating a support floor which the cryptocurrency has managed to stay above since.
Is it time for a long-term bull reversal?
Omkar Godbole, who produces technical chart-based price updates on Bitcoin at CoinDesk, said:
“While the “V”-shaped rally from the Feb. 6 low of $5,947.40 certainly paints a bullish picture, investors are still divided on whether BTC has found a long-term bottom below $6,000.”
Looking at the Relative Strength Index (RSI) of Bitcoin, a momentum oscillator that measures the speed and change of price movements, Godbole’s view is that a move of the weekly RSI “above 53.00” would “confirm the long-term bull reversal and open the doors for a re-test of record highs.”
“However, on the way higher, bitcoin prices could face resistance at $17,174 (Jan. 6 high),” he noted.
Bitcoin, which has been around since 2009, is a cryptocurrency. It operates without a central bank, unlike traditional currencies.
Bank of England Governor Mark Carney calls Bitcoin a “failed currency”
According to The Telegraph, Mr Carney told students at London’s Regent’s University:
“It has pretty much failed thus far on … the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange,”
However, he added that the cryptocurrency’s underlying technology could be useful in verifying financial transactions in a decentralized way.
Video – Definition of Cryptocurrency
Have you ever wondered what cryptocurrencies are. They are a form of digital currency that operate without a single administrator or central bank.