Bitcoin looks set to test the daily 200 moving average at $8,770 after sliding down towards the crucial $9,000 level of support.
It is now 15% down from its four-month high of $10,500 with the sell-off being reflected across all cryptocurrency markets.
The next logical stopping point for Bitcoin if $9,000 is to break with conviction is the region between $8,830 and $8,870 where the often-visited $8,450 line could be on the cards.
The ongoing correction will be painful to take for Bitcoin bulls who were of the belief that it would surge to a new all-time high in light of May’s block reward halving and the global coronavirus crisis.
Trillions of dollars have been wiped from global markets as the coronavirus begins to spread across mainland Europe.
Many thought that this would have a positive effect on the price of Bitcoin as it is often considered as a safe haven asset like gold.
However, the sell-off for Bitcoin has been more severe than expected, which could indicate the start of a short-term downtrend.
There is also a diagonal line of support that could be relevant over the coming months as it propped price up throughout the start and end of 2019.
The trendline is currently at around $7,860, which could be a key area for Bitcoin to bounce back towards the $8,400 level.
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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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