Bitcoin remained in a tight trading range over the weekend as volatility and volume both experienced a notable downturn.
At the time of writing it was trading at $43,450 as it attempts to establish a key level of support above the $43,000 region.
Last week presented Bitcoin with two major warnings, with the Evergrande debt crisis in China sending shockwaves across global capital markets, as well as an effective ban on cryptocurrency trading from the Chinese central bank.
On both occasions Bitcoin tested the $40,000 level of support before being met by a barrage of buyers, many of whom remain stubborn in their belief that Bitcoin will achieve an all-time high over the next six months.
However, with the uptrend from $28,800 to $53,000 now having broken, Bitcoin needs to avoid a series of lower highs and lower lows by printing a daily candle back above the $48,500 level of resistance.
Failure to do this could well see downside pressure begin to mount again, with downside price targets beginning to emerge at $37,400 and $35,000.
This would also pose a stark issue for relatively new and illiquid markets like DeFi and NFTs, may of which sold off dramatically during Bitcoin’s initial foray into the $39,800 region.
A daily closure below $39,500 would indicate that the bear market is in and that the $53,000 high was indeed a bull trap and not a bullish reversal.
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Bitcoin pricing
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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
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