Bitcoin remains in bearish control despite experiencing a 3.35% move to the upside after slumping down to the $8,435 level of support.
It is now re-testing the daily 200 moving average at $8,750 ahead of a potential breakout above the $8,830 level of support-turned-resistance, although the market needs a surge in volume for a major move to come into fruition.
The most likely scenario moving into the rest of the week is a period of consolidation following Tuesday’s gruelling descent to the downside.
Bitcoin is now trading 16% lower than it was on February 14 when it tested the $10,500 level of resistance.
Another rejection from the 200 moving average could signal the start of further downtrend that will likely drive price to a diagonal trendline dating back to February 2019.
Interestingly, the trendline that was used as support at the end of 2019 is in confluence with the horizontal level at $7,880, which means that it poses a predictable stopping point for Bitcoin before the end of the month.
The upcoming Bitcoin halving will also undoubtedly have an impact on its price, as it has in previous years.
As block rewards for miners get slashed from 12.5BTC to 6.25BTC per block, supply subsequently dries up leading to a surge in demand and a hike in price.
This is why – if Bitcoin can continue trading above $7,800 – it remains bullish from a macro perspective, despite looking unhealthy in the short term.
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Bitcoin pricing
Current live BTC pricing information and interactive charts are available on our site 24 hours a day. The ticker bar at the bottom of every page on our site has the latest Bitcoin price. Pricing is also available in a range of different currency equivalents:
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About Bitcoin
In August 2008, the domain name bitcoin.org was registered. On 31st October 2008, a paper was published called “Bitcoin: A Peer-to-Peer Electronic Cash System”. This was authored by Satoshi Nakamoto, the inventor of Bitcoin. To date, no one knows who this person, or people, are.
The paper outlined a method of using a P2P network for electronic transactions without “relying on trust”. On January 3 2009, the Bitcoin network came into existence. Nakamoto mined block number “0” (or the “genesis block”), which had a reward of 50 Bitcoins.
More BTC news and information
If you want to find out more information about Bitcoin or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started.
As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.