Bitcoin erases Friday’s decline in a surge above $56,500

Bitcoin was looking ugly on Friday as it broke down to $52,500 but the dip buyers stepped up on the weekend and are continuing to buy today as the risk trade improves.

The rally to $56,700 is nearly back to Friday’s high of $56,995 and that’s going to offer some resistance here.

Zooming out, the recent problem for bitcoin is that its gains on ‘risk positive’ days aren’t enough to offset the losses on the ‘risk negative’ days, leading to persistent pressure.

If we can get some late strength and follow-through in tomorrow’s trade, that would go some ways towards reversing that.

This article was written by Adam Button at www.forexlive.com.