Bitcoin is in the midst of a major market downturn amid fears of a new Covid-19 variant originating in South Africa.
All global stock indices have been struck by fear this morning, with futures for the S&P500 and Dow Jones trading 1.66% and 0.89% lower.
More than $250 million has been wiped off the cryptocurrency market following a cocktail of over-leveraged long positions and negative news.
At the time of writing, Bitcoin was trading at $54,000 – 7.85% lower than 24-hours ago when it began to make a move towards $60,000.
From a technical perspective, the $52,800 to $53,500 region does provide a solid level of support dating back to the start of the year. However, it’s worth noting that open interest remains at $18 billion – indicating that further liquidations could be in store.
Bitcoin is expected to bounce from around $53,000 with levels of resistance back up at $56,400. A rejection from $56,400 would form another gruelling lower high, which would act as confirmation of a downtrend and macro reversal.
In order for Bitcoin to prevent a dreary end to the year it needs to start closing daily candles back above the $60,000 level on significant volume. Failure to do so will likely result in a continued plight down into the $40,000 and potentially even $30,000 region.
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Bitcoin 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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Euro – BTCtoEUR
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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
If you want to find out more information about Bitcoin or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started.
As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.