Virtual currency, Bitcoin rallied on Thursday, September 7, in a bid to reclaim its all-time high of $5,000 as jitters over China’s move to declare initial coin offerings illegal further receded.
One bitcoin BTCUSD, +0.55% climbed 1.4% to $4,679.60. However, ether, which trades on the Ethereum platform, slid 1.9% to $331.42, according to data from Coindesk.com.
The Chinese government last weekend indicated that it will ban initial coin offerings, triggering a big selloff in digital currencies.
See commentary: Bitcoin, Ether and other cryptocurrencies may be seeing the beginning of the end
The sustained weakness in the U.S. dollar DXY, -0.57% despite the dramatic debt ceiling deal, is also attracting interest in bitcoin, according to Newsbtc.com, a cryptocurrency website.
President Donald Trump and congressional leaders on Wednesday unexpectedly reached an agreement to extend the debt limit and fund the government to Dec. 15.
However, a technical analysis by Coindesk.com suggests that bitcoin’s rally could fizzle as the Money Flow Index, an indicator for buying and selling pressure based on price and volume, is pointing lower, Marketwatch reports.
