Bitcoin enjoyed a great start to the week on Monday.
The digital coin, which has been sliding the past couple days amid uncertainty about the future of cryptocurrencies in China, was trading up over 7% at $US3,928 per coin.
Reports on September 14 that Chinese regulators would require exchanges to voluntary shut bitcoin trading triggered a sell-off of nearly $US1,000, bringing the price of the cryptocurrency below $US3,000 for the first time in over a month. Within hours, however, bitcoin recouped most of those losses.
But traders are optimistic.
Josh Olszwicz, a bitcoin trader, for instance, told Business Insider the news out of China won’t have a long-term impact on bitcoin because it doesn’t affect the cryptocurrency’s blockchain, the underpinning technology of the coin.
“If it doesn’t affect the protocol, then it’s not a real problem,” he told Business Insider.”The bitcoin cash shakeup was much more worrisome from my perspective, but even then the core bitcoin protocol remained unaffected.”
On August 1, bitcoin forked into two different cryptocurrencies: bitcoin and bitcoin cash.
Technical analysis reported by CoinDesk, the cryptocurrency news site, suggested a break of $US3,800 would open the door to $US4,200 or higher.
“Such a move would add credence to last week’s bullish doji reversal and higher lows pattern, and may open the doors for $US4,300,” CoinDesk’s Omkar Godbole wrote.
Bitcoin is up about 429% this year.
Get the latest Bitcoin price here.