Bitcoin has shown today that it can still trade with incredible swings as it did it the last year. 3 hours ago, bitcoin surged as much as 17% to trade above $8,00. We had not seen this price since last March 28. The No. 1 cryptocurrency reached as high as $8,061 and then backed down to trade near $7,676 as this update is written,
The rest of the market appears very solid, showing positive percentages in all the top 100 principal cryptocurrencies. There is no a clear fundamental that could have sent the price to jump this way but there are some speculations in twitter about recent news that are talking about that bitcoin has been declared compliant with Islamic Tradition or Shariah Law.
This week, Blossom Finance, a microfinance firm based in Indonesia, published a working paper that says “bitcoin qualifies as Islamic money, except where it is banned by a local government.”
If this news is effective and Bitcoins is declared Holy for Islamic community, 1.8 billion people will be allowed to buy and trade with Bitcoin and cryptocurrencies.
Looking at the 4-hour price charts on the Broker JAFX it shows bulls are currently trying to test the resistance on the 200 EMA close to the $7.837.
However, the Relative Strength Index (RSI) and Stochastic oscillators are well below the 80 range showing BTC/USD markets are still not overbought and price can go higher a little after the break of the last 2 hours.
On the upside, we see some resistance at the $8,150. On the backside, if this run-up ends in a short party then there are strong supports between $7,500 through $7,100.