Bitcoin rallied above US$4Â 000 on Friday, leading the broad cryptocurrency market higher as the biggest digital asset headed for its best week in a year.
The token has gained more than 28% since Monday, on course for the largest weekly advance since the peak of the crypto craze in December 2017. Other cryptocurrencies, including ethereum and litecoin also jumped, and the Bloomberg Galaxy Crypto Index is up more than a third this week.
Analysts who watch chart patterns for hints on future price direction had said this year’s selloff may have gone to far.
Bitcoin plunged through a long-term support at $6 000 in November, taking its losses for the year to more than 80%. Yet momentum indicators, including the relative strength index and the GTI Vera Convergence Divergence Indicator, suggested that near-term prices could climb. — Reported by Eddie van der Walt, with assistance from Kenneth Sexton, (c) 2018 Bloomberg LP