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08/20 14:14

Bitcoin smashes through $71,000: how high can this

Bitcoin smashes through $71,000: how high can this breakout run?The broader cryptocurrency market is regaining momentum as improving liquidity conditions fuel expectations of another bullish leg.Bitcoin has broken past the psychologically important $70,000 mark after rallying 7% on Wednesday and it is now trading above $71,000.The rally followed the US Treasury Department’s decision to expand buyback operations for longer-dated government securities in an attempt to support market liquidity and ease .US Treasury doubles long-term bond buybacksThe US Treasury announced that it will at least double the maximum size of its liquidity-support buybacks for longer-dated nominal securities. The maximum value of each operation will increase from $2 billion to at least $4 billion. By increasing its purchases of longer-term bonds, including securities in the 10-year to 30-year range, the Treasury can support market liquidity and place downward pressure on yieldsLower long-term yields can improve financial conditions and encourage investors to move toward riskier assets, including stocks and cryptocurrencies. However, the buyback program is a liquidity-management measure and should not be interpreted as a conventional quantitative easing program.Bitcoin Technical outlook: Could $BTC surpass $70,000?The $BTC/USD 4-hour chart has turned bullish thanks to the latest rally. Bitcoin is up by 10.9% in the last 24 hours and is now trading around $71,228. $BTC remains comfortably above the 50-day Exponential Moving Average at $64,766. It has also reclaimed the 23.6% Fibonacci retracement at $63,711, measured from the decline between the $82,850 swing high and the $57,800 low.The price has surpassed the 50% Fibonacci retracement at $70,325, which represents the first major resistance level.Beyond that barrier, the 200-day EMA at $71,941 could present a more significant test for buyers and determine whether Bitcoin’s recovery develops into a sustained rally.A decisive daily close above t

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