Bitcoin targets 1-week high, tries breaking through its narrow range

Bitcoin rose in spot trading on Wednesday, to pull back towards the 1-week high, in attempts to breakout from the limited volatility range that dominated trading recently, as the crypto market is still mainly focused on the positive news about China approach to the crypto industry, which is boosting investments confidence levels in the nascent industry.

At Bitstamp exchange, Bitcoin rose by 1.4% or $129 to $9,448, after it opened at $9,319, with an intraday low of $9,272.  

Bitcoin fell by 1% yesterday, on marked profit taking activity after it posted a 1-week high of $9,587 in the previous day.

The total market capitalization of cryptocurrencies rose by $2 billion today, to a total of $254 billion, as Bitcoin and most other major cryptos rebounded.

After Bitcoin posted a 6-week high of $10,350 nearly 2 weeks ago, it remained in a limited volatility range above the $9,000, which could be a sign that the market is gathering momentum to jump back above the $10,000 barrier. 

This large rally by Bitcoin came after positive remarks from the Chinese leader Xi Jinping about the blockchain technology and the crypto industry, as China is giving more positive news about the new industry.

The crypto market is still mainly focused on the positive news about China approach to the crypto industry, which is boosting investments confidence levels in the nascent industry.

The latest of such is new official Chinese documents revealed that Bitcoin mining will no longer face prohibition by the government, as the documents show that mining is no longer on the list of undesirable industries.

The Chinese National Development and Reform Commission has removed cryptocurrency mining from the list of industries it wants to eliminate.

This new development comes within China’s new Industrial Structure Adjustment Guidance Catalog, which will take effect by the beginning of 2020.