Bitcoin was trading up almost 5% on Monday after a decent recovery over the weekend. The price surged above the $6,600 area, to 11-day highs. Other coins also rallied significantly, which helped the market to trim losses after aggressive declines.
The bullish catalyst for BTC/USD was the report that the largest US cryptocurrency exchange Coinbase, after it announced that its crypto-custody product went live. The custody aims to safeguard cryptocurrencies for institutional clients such as hedge funds. Traders hope that this step will attract more institutional investors down the road, which is supportive for the industry.
Bitcoin has been changing hands close to daily highs during the early hours on Tuesday, with the immediate resistance now coming at $6,700. Should the market manage to keep the current optimism, the corrective rebound will continue. However, the downside risks persist as there is still much scepticism in the market, and the latest catalyst won’t be enough to fuel further rise. Therefore, a lack of upside impetus could derail the recovery attempts and bring another sell-off to the market.