Bitcoin is testing the $10,000 level of resistance once again this morning after surging by 2.55% over the past 24 hours.
This marks the fourth time it has tested the psychological level of resistance since May 7, with a break out looking increasingly likely.
Levels of support and resistance get weaker with every touch as respective sellers and buyers get exhausted, meaning that its break out to the yearly high of $10,500 seems to be on the cards.
However, another rejection from $10,000 would indicate a lack of momentum from the buy side, which would then lead to a sell-off to the $8,830 level of support before a period of consolidation.
It’s also worth noting that the recent daily golden cross has yet to take effect after the 50 EMA crossed the 200 EMA to the upside last Tuesday.
The previous golden cross preceded a 30% rally while the one before that came in April 2019 before a tremendous 175% surge to the upside.
Any kind of break out above $10,000 on strong volume will cause a cascade of short position liquidations on derivative exchanges like BitMEX and Deribit, which may cause price to extend to as far as $11,300.
This ties into the recent narrative around the halving, with analysts suggesting that the reduction in miner rewards will act as a bull market catalyst as new supply gets reduced.
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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
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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.