Bitcoin is approaching the critical $6,800 level of resistance after surging by more than 15% in the past 24 hours.
The tremendous move to the upside will come as a surprise to the majority of Bitcoin traders, many of whom have been suggesting that a continued correction to the $3,000 region was on the cards.
Bitcoin isn’t out of the woods just yet, it needs to demonstrate strength by closing this evening’s daily candle above $6,800, which became a point of rejection on Friday.
After failing to achieve a new high on Friday, Bitcoin proceeded to plunge by around 20% to the $5,700 before enjoying a period of consolidation.
It’s worth noting that the daily MACD indicator has printed a bullish cross for the first time since it crossed to the downside on 15th February, which marked the local top at $10,500.
A clear breakout above $6,800 would bring price targets of $7,400 and $7,880 into the picture, although Bitcoin will also likely test the daily 200MA which is at $8,330.
Another rejection from this point would be a miserable turn of events for Bitcoin bulls as it indicates that an extension of this short-term bear market is certainly on the cards.
Bearish momentum in light of a rejection from resistance could well result in an initial move to the $5,700 region before it tests this month’s lows of $3,600 and $4,000.
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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.
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