Bitcoin posts longest rally in a month

Bitcoin advanced for a fourth day, exceeding US$7 000 in its longest winning streak in more than a month, and with momentum indicators suggesting the rally has further to run.

The biggest cryptocurrency climbed as much as 4.7% on Tuesday to $7 035, the highest since 3 August, on course for the first close above its 50-day average since July, according to composite weekday prices on Bloomberg. Other cryptocurrencies were swept up in the move, with ripple, ethereum and ;itecoin also advancing at least 3.5%.

In addition to breaking above the 50-day moving average, Divergence Analysis’s (DVAN) Buying and Selling Pressure indicator is also pointing higher.

The asset class has had a tough year, as 2017’s mania ended in a selloff for bitcoin of as much as 70% from its record intraday high in December. Yet predictions of doom proved premature, and prices have consolidated above the $6 000 level.  — Reported by Eddie van der Walt, with assistance from Kenneth Sexton, (c) 2018 Bloomberg LP