Bitcoin prices exploded higher on Friday afternoon after Chinese President Xi’s made surprisingly positive comments on the future of blockchain technology. BTCUSD moved nearly 40% higher in less than 48 hours since the news broke out.
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Speaking at the 18th collective study of the Political Bureau of the Central Committee on October 24 in Beijing, Xi said”
“We must take the blockchain as an important breakthrough for independent innovation of core technologies. “[We must] clarify the main direction, increase investment, focus on a number of key core technologies, and accelerate the development of blockchain technology and industrial innovation.”
Xi’s statement launched the entire cryptocurrency market higher with Bitcoin prices gaining 40% in less than 48 hours after the news hit the wires. The price action settled down just below the $10000 mark on Sunday. We have made another step lower today as the price tests the slightly-ascending trend line.
The major resistance is located around the $9600 mark where the 100 DMA sits. On the other hand, the descending trend line that connects recent swing highs will now provide support to bulls around the $8800 handle.