Bitcoin rallied decently on Monday, with the price easily jumping above the 10-DMA, up to the $6,700 area. BTC/USD has been extending gains for a fifth day in a row today, with the coin trading within striking distance of the $6,800 key local resistance level, which has been limiting the upside momentum for over a month already.
The bullish catalyst came from the reports that BlackRock (NYSE:BLK) has formed a special working group to focus on the ways it might take advantage of digital currencies and whether it should invest in bitcoin. This is a cheering signal for the industry as BlackRock is the world’s biggest asset management company, so other large firms could follow suit and join the game.
The pair shows further signs of a reversal, but it is yet to confirm the bottom. The virtual currency still lacks the upside impulse to challenge the key area of $6,800. Only a break above this region will become a confirmation of a local reversal and will open the way to the $7,000 mark and higher. Moreover, after the recent ascent, bitcoin could attract some profit-taking, though the downside potential should be limited.