Bitcoin Price Up $800 To $7,200: Highest Climb In 2 Months

KEY POINTS

BTC rally is highest in two months
Bitcoin is back at $7,000
Support line drawn since July this year still holds

When it looked as though Bitcoin (BTC) was about to go lower than $6,400, massive buying on Wednesday drove it to an $800 gain that put it back above $7,000.

Bitcoin's highest climb in nearly two months comes after Monday's crypto sell-off where almost the entire market was in the red because of a Bloomberg report that brought up a Chinese crypto scam. The report's original publisher was Chainalysis, and it noted that a Ponzi scheme led to an approximate $2 billion worth of stolen cryptos that scammers were dumping on exchanges to cash out.

Ethereum (ETH) was the first to take the plunge with a -10 percent dive, and the rest of the crypto market caught on. BTC, from slightly above $7,000, finally broke below it after more than three weeks constrained within the $7,000 and $8,000 range. Bitcoin went on to trade even lower on Tuesday before it bounced back to its current trading price of $7,170.

'Tis the Season
The most significant coin by market cap is known to be especially volatile in December and, in the past, had averaged movements exceeding 30 percent. That same euphoria that propelled BTC to its peak at $20,000 in December 2017 is what some investors are hoping for the same month in 2019 would do for Bitcoin. It may not be as far up as $20,000, but BTC bulls are hopeful for a little Santa Clause rally.

2020 beyond
Of course, predictions are rampant for where the king of cryptos is heading when its scheduled halving takes place next year -- with most expecting a bullish outcome. In the "State of Crypto 2019" report of Blockchain Capital, the blockchain venture capitalist notes that it is bullish for Bitcoin in 2020 and that it believes that BTC will "blow past" $20,000.

But the market seeing a huge rally in 2020 is all hypothesis. Over at the technicals, the uptick seen in BTC on Wednesday was just an inch away from the support line drawn since July that was tested several times in September, October, and now in December. How significant is this level is uncertain, but somehow the market seems to be respecting this area or treating it as a zone for buying-- at least for the time being.