Bitcoin endured a painful weekend of price action as it lost significant ground on the $10,000 level of resistance.
The world’s largest cryptocurrency fell to as low as $8,900 on some exchanges before it established a level of support above $9,000.
The dramatic 4.82% move to the downside comes after six weeks of stagnant price action beneath $10,000 despite two failed attempts at breaking above $10,500.
The lack of recent volatility indicates that price is coiling up ahead of a major move in the coming weeks, although it seems more unlikely that it will break $10,500.
What’s more likely is a further correction to the downside with $8,830 and $7,800 being two key levels of support to look out for.
With the hype of optimism surrounding the recent halving now having subsided, Bitcoin needs a fundamental catalyst if it wants to drive towards a new all-time high in 2020.
Whether it be increased retail adoption or institutional investment remains unclear, but what is clear is that buyers are showing signs of exhaustion in this current range.
At the time of writing Bitcoin is trading at $9,102, a break below $8,900 on significant volume would set up an initial move to $8,150 that could extend as far as $7,800 depending on the amount of liquidations on derivative exchanges.
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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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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.