Bitcoin Rallies from Support
The recent price correction from the big 2019 rally finally came to an end following positive comments on blockchain from the Chinese President Xi Jinping. After selling off to the support level of $7,500, Bitcoin rallied as high as $10,500 with one of the largest daily gains ever to break through key resistance levels.
During a Chinese Politburo committee session, Xi stated:
“We must take blockchain as an important breakthrough for independent innovation of core technologies, clarify the main directions, increase investment, focus on a number of key technologies, and accelerate the development of blockchain and industrial innovation.”
The comments were a huge boost for the cryptocurrency market after China had previously clamped down on cryptocurrency in the country and the community is now buzzing with the potential for mass adoption with the huge Chinese population on board.
Litecoin Rises and Eyes a Privacy Upgrade
Litecoin joined the market rally with a 34% gain from the lows near $47.50 to trade at $64.00. Like Bitcoin, the rally put an end to the recent bearish activity and sets LTC up for further gains.
The Litecoin foundation is currently planning a privacy upgrade that would allow for opt-in privacy transactions. The technology was originally planned for BTC and could be an interesting addition if it gets the go ahead. Investors may be drawn to Litecoin if the potential for private transactions exists.
Bitcoin and Litecoin have been in correction mode after the big 2019 rally ran out of steam. After dropping in recent months, investors were starting to worry about the potential downside until the bullish comments from China got the community buzzing once again. The acceptance of blockchain technology by China’s leader is a huge development and opens the door to adoption amongst the massive Chinese population and economy. The comments are just another seal of approval as we now see governments and big corporations that used to dismiss cryptocurrency, finally accepting that the technology has the potential to revolutionize the world economy. The average investor is still very unaware of the activity that is bubbling under the surface and when they are finally drawn to the market, prices will likely be a lot higher.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.