Bitcoin experienced a modest breakout recently, climbing roughly 5% in under 24 hours after trading within a reasonably defined range since late June.
The digital currency’s price rose to as much as $9,356.33 this afternoon, CoinDesk figures show.
At this point, it was up 4.8% from yesterday’s intra-day low of $8,919.76, reached at approximately 5:30 p.m. EDT, additional CoinDesk data reveals.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
This modest breakout was bound to happen, said John Todaro, director of digital currency research for TradeBlock.
“Prior to today’s push higher, bitcoin volatility had declined to recent lows,” he noted.
“Given the recent low levels of volatility, relative to its historical realized vol, it was apparent that a move to the upside or downside was incoming,” said Todaro.
Jim Wyckoff, a veteran market analyst, wrote about such developments in his morning note for Kitco News, where he referenced the recent decline in volatility, stating that it pointed toward “a much bigger price move” that was “on the horizon.”
In addition, multiple analysts emphasized recent strength in stocks.
The S&P 500, Dow Jones Industrial Average and NASDAQ Composite Index were all up for the day at the time of this writing, according to Google Finance.
Todaro spoke to this development, stating that:
“As for the fundamental reason why bitcoin and digital currencies broadly pushed higher today, I believe they are moving alongside equity markets which have posted a strong performance on the day as investors once again become more comfortable with risk-on assets.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.