Cryptocurrency prices have rallied sharply after having undergone a major correction in previous weeks. The two most popular digital currencies Bitcoin and Ethereum have rallied by 4 and 6 percent respectively. Prices of other digital tokens have also increased as investors cheer newfound optimism.

Bulls Take Control of Cryptocurrency Market

Over the past few weeks, several institutional investors and fund houses have announced the launch of crypto funds. These funds are investing both directly and indirectly in digital currencies.

According to some media reports, BlackRock, the world’s biggest asset management firm is considering an investment in digital currencies. CEO Laurence Fink has denied rumors that the investment firm had invested in cryptocurrencies. Interestingly he also stated that the company was open to making such an investment. BlackRock has more than $6.3 trillion in assets under management and its entry in digital currencies could trigger investor optimism to new highs.

Technical Breakouts

Bitcoin had a strong resistance at $6,000 and had been trading in a range since the last few days. It finally found a break out from those levels and went up to $6,600 The oldest digital currency formed a triangle pattern with the base at $6,050 and the upper vertex at $6,850. The 100 day SMA at $6,450 and it is highly unlikely that the cryptocurrency will drop below that level.

Ethereum also began the trading day with support at $435 but found a break out at $455 and is now trading at $477. The second largest cryptocurrency has added more than $1 billion in the last few hours to its market capitalization.

Others Also Join The Rally

EOS has been the surprise leader in this market rally. It has been mired in controversy ever since its launch. EOS prices had reacted negatively to past events and the rise in EOS RAM prices. But value of the digital token has risen by 9 percent today.

Bitcoin Cash and Litecoin which got added to Robinhood Crypto platform have continued their price rally. Both digital currencies are trading at their respective highest points since the last week.

Image provided by Pixabay.