BITCOIN’S 60% RALLY MAY BE RUNNING OUT OF STEAM

Bitcoin’s burst above the US$50,000 level didn’t last long, and chart patterns signal its rally since July is at risk of fading. The largest cryptocurrency fell as much as 4.9 per cent Thursday to US$46,322, with other tokens including Ether retreating along with the Bloomberg Galaxy Crypto Index. The drop pared Bitcoin’s rally from a July 20 low to about 60 per cent. John Bollinger, inventor of Bollinger bands, in a tweet suggested taking some profits or hedging. Narrowing Bollinger bands — a popular technical indicator that highlights volatility — indicate the Bitcoin rally is flagging and that the virtual currency faces a zone of resistance from US$50,000 to US$51,000. A key threshold to watch is the middle line of the Bollinger study at about US$46,700.