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Bitcoin’s Rally May Have More Room to Run, Technicals Suggest

  • Largest cryptocurrency rebounds from worst week since November
  • Digital token just retook lower band of its trading envelope

Bitcoin’s starting the week on the right foot after its worst week since November. Now, a number of technical indicators are signaling the potential rally may have further room to run.

On Monday, amid a rally of more than 4% to $8,886, Bitcoin retook its lower band, according to the Trading Envelope Indicator, a gauge that smooths moving averages to map out higher and lower limits. It may potentially test the upper limit, which could bring the coin to around $10,600. Bitcoin posted a similar move in mid-December, when it breached its lower band and rallied more than 10% in the ensuing week.