Bitcoin is on the brink of a major breakout despite questionable trading activity that saw it leapfrog the $9,000 level of resistance on Thursday.
It is now testing the daily 22 and 50 exponential moving averages as we head into the typically low volume weekend.
A rejection from the $9,320 level of resistance will mark a third consecutive lower high from the $10,500 top on February 13, which has the hallmarks of a bearish reversal.
Potential targets to the downside remain at $8,830 and $8,460 with the daily 200 moving average also likely to provide support at $8,715.
Much of the upcoming price action will depend on the impact of May’s halving event, which will see block rewards for miners slashed from 12.5BTC per block to 6.25BTC per block.
This has, historically, caused a tremendous upswing in the value of cryptocurrencies as supply from miners begins to dry up, causing a surge in demand.
It is also a possibility that Bitcoin will rally moving into May’s halving as trader attempt to price-in the impact of it before it comes into fruition.
A clear breakout above the $10,200 region would see Bitcoin trade above a key diagonal trendline for the first time since it began in December 2017.
Breaking above $10,200 will likely see Bitcoin continue towards the $12,300 and $13,800 levels of resistance, both of which may be final stopping points before a FOMO-induced surge to a new all-time high.
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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.
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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.