Bitcoin momentarily broke the $40,000 barrier for the first time since September as global markets slip amid a resurgence in the US Dollar.
The Dollar index (DXY) rose by 0.42% on Monday having enjoyed a 7.5% move to the upside since May 20.
This puts immediate pressure against all assets that trade against the Dollar, including Bitcoin.
In order for Bitcoin to regain its bullish posture, it must establish the $40,000 level as a firm level of support before beginning to make higher lows in the $41,500 and $43,000 regions.
Failure to do so could well see Bitcoin fall through its delicate floor, with price targets emerging as low as $29,500.
It’s worth noting that the fear and greed index is currently at 23, indicating ‘extreme fear’. This indicates that the market may be due a short-term relief rally as opporunistic traders attempt to ‘buy the fear’.
However, Bitcoin is in the midst of a major downtrend across all time frames as investors begin to question whether this is the start of a gruelling cryptocurrency bear market.
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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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