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Bitcoin is busting out

Published 02/01/2017, 07:26 AM
Updated 02/01/2017, 09:39 AM
© Reuters/Bobby Yip, Attendants pose with a bitcoin sign during the opening of Hong Kong's first bitcoin retail store.

Bitcoin is busting out of its range that had been in place for the middle part of January. The cryptocurrency spent the past two weeks trapped at the $880 to $920 resistance level but has finally broken through.

Bitcoin rallied 3.7% on Tuesday as the Trump team exchanged barbs with German Chancellor Angela Merkel over the weakness of the euro, closing the day near $955 a coin. Tuesday's gains have carried over into Wednesday's session with the cryptocurrency up close to 1% near $972.

Bitcoin has had a wild start to 2017 after rallying more than 120% in 2016 to become the top performing currency for a second straight year. It rallied more than 20% in the opening says of the year, crossing the $1,000 level for the first time since November 2013 before tumbling more than 35% amid worries that China was going to crack down on trading. Recently, the cryptocurrency has shrugged off the news that China's three largest bitcoin exchanges will begin charging a flat fee of 0.2% for each transaction.

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