Bitcoin loses momentum with test of $9,150 support

Bitcoin has slumped back towards the $9,150 level of support after failing to achieve a new high above $9,560.

The $9,150 level acted as a point of resistance on January 19, with Bitcoin facing a swift rejection and dropping 8% in the following 12-hours.

Breaking this level would likely see Bitcoin succumb to bearish pressure back into the $8,850 range, which is also in confluence with the daily 200 moving average.

Bouncing from the 200 MA would be expected, although if Bitcoin begins to trade beneath it a new bearish phase in the market would come into play.

It would also not be surprising to see Bitcoin test the recent daily golden cross that saw the 50 EMA cross the 200 EMA to the upside, with the cross coming into fruition at $8,250.

However, another bounce from the $9,150 region would be an indication of overwhelming strength and optimism in Bitcoin leading up to this summer’s halving event.

The halving event will see block rewards for miners slashed from 12.5BTC per block to 6.25BTC per block, which has historically had a positive impact on price for a number of reasons.

One of which is that miners will be keen to hold on to the extra Bitcoin mined until the halving, thus limiting supply amid mounting demand.

Another theory on why it can cause a surge in the price of Bitcoin is that miners will be incentivised to force it higher in order for overheads to be met and the industry to remain profitable.

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 Bitcoin news and information

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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.