Bitcoin Price Hits Five-Week High Above $10,000

Bitcoin experienced a significant price jump in the Asian trading hours, surpassing $10,000. However, this breakout into five digits was short-lived as the price dropped back down.

Bitcoin's price reached $10,350 at 01:45 UTC, the highest level since September 24, according to Bitstamp data. The global average price, as calculated by CoinDesk's Bitcoin Price Index, reached a high of $10,332.

Just 24 hours prior, Bitcoin was facing bearish pressures and there were predictions of a deeper drop due to the "death cross," which refers to a bearish cross of long-term moving averages.

Bitcoin rebounded from around $7,500 in the early U.S. trading hours on Friday and rose to $8,800 at 17:20 UTC. It then consolidated in the range of $8,500 to $8,700 for a few hours before briefly surpassing $10,000.

The rally from lows below $7,400 to highs above $10,300 is considered the third-largest 24-hour price gain in Bitcoin's history.

The surge in Bitcoin's price is believed to be associated with Chinese President Xi Jinping's comments about accelerating the adoption of blockchain technology. China was a significant source of demand for cryptocurrencies during the 2017 bull run.

Some experts and observers believe that China's support for blockchain technology will compel other major nations, including the U.S., to embrace the technology, potentially benefiting Bitcoin.

However, there are concerns that the market optimism may be premature, as China is developing its own digital currency and is unlikely to lift its ban on Bitcoin and other cryptocurrencies.

At the time of writing, Bitcoin's price has dropped to $9,320 on Bitstamp, down from the Asian session high. Technical charts suggest that a bullish breakout would be confirmed if prices surpass $9,750.

The daily chart indicates early signs of a bullish reversal, with Bitcoin invalidating the bearish lower highs setup and breaking through resistance at $8,820. However, it has yet to exit the falling channel represented by trendlines connecting previous highs and lows.

A close above the upper edge of the bearish channel, currently at $9,750, could indicate a resumption of the rally from the April low of around $4,100 and potentially lead to a re-test of the June high of $13,880.

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