Bitcoin Faces Technical Hurdle as Libra Steals Crypto Spotlight

(Bloomberg) -- While it seems like everyone’s fixated on the Libra cryptocurrency championed by Facebook Inc., Bitcoin aficionados are looking toward the $10,000 mark as the next price hurdle for the largest digital asset.

But a key technical obstacle lie ahead. Bitcoin failed to breach the level when it last approached it in May 2018. In addition, the token’s relative strength index, which identifies general price trends, is nearing overbought levels. The RSI moves between zero and 100 to depict the strength of recent price changes.

Bitcoin has gained as much as 12% to $9,477 this week. The surge has coincided with Facebook unveiling plans for the token that it hopes will one day trade much like the dollar. The social media giant launched the project in partnership with finance and tech heavyweights including Visa Inc., EBay Inc. and Uber Technologies Inc., adding to optimism that digital assets are becoming more widely adopted by mainstream finance.

“Facebook’s entry into the crypto space perhaps signifies the biggest network potential for digital currencies, capable of reaching into billions,” said Christel Quek, chief commercial officer at Bolt Global, a mobile streaming platform and wallet. It “indicates an upcoming shift in mainstream finance,” she said, adding that “this may see further revival and growth of digital tokens this year, as more developments emerge.”

Other major cryptocurrencies also gained this week, with Ether up close to 4% and Litecoin adding about 6%.

--With assistance from Kenneth Sexton.

To contact the reporters on this story: Vildana Hajric in New York at vhajric1@bloomberg.net;Olivia Rinaldi in New York at orinaldi1@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave Liedtka, Rita Nazareth

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