Bitcoin adds more than $200 on Monday, inches closer to record highs

Bitcoin gathered strength against the greenback on Monday, lifting the BTC/USD pair to its highest level since September 2, on which the pair set its record high at $4969. As of writing, the pair was trading at $4820, gaining 4.5%, or $210, on the day.

Although there were no apparent catalysts behind bitcoins sharp upsurge, investors seem to have shaken off concerns about the future of cryptocurrency trading. In fact, following China's decision to ban big exchanges from trading bitcoin, Japan issued licenses for eleven digital currency exchange operators since mid-September. On Monday, Overstock.com, an American internet retailer giant headquartered in Midvale, Utah, near Salt Lake City, announced that it was planning to launch its new regulated token exchange with its own initial coin offering (ICO), as reported by Coindesk.com. 

On the other hand, in an article for The Guardian, Ken Rogoff, Professor of Public Policy and Professor of Economics at Harvard University, noted that although he thought that the technology would thrive, the price of bitcoin would collapse. "The long history of currency tells us that what the private sector innovates, the state eventually regulates and appropriates," Rogoff further added. Nonetheless, bitcoin investors seem to have ignored those comments, keeping the bullish momentum strong on Monday.

Technical outlook

The initial hurdle for the pair aligns at $4969/$5000 (record high/psychological level). With a decisive break above this level, the pair could aim for $5200 (upper line of the trend channel coming from mid-September). On the downside, supports align at $4550 (daily low), $4200 (50-DMA) and $4000 (psychological level).