Bitcoin is currently trading at $47,300 after showing signs of resilience in its recent surge from a local low of $43,350.
While the structure of the macro up-trend from $29,000 to $53,000 has now been broken, Bitcoin has the potential to regain its bullish posture if it can begin to close daily candles back above the $50,450 level of resistance.
However, astute traders will be on the lookout for a crucial lower high in the $49,000 region, which would confirm $53,000 as a short to medium-term top with downside targets beginning to emerge below $40,000.
A lower high at $49,000, coupled with the lower low at $43,000, would demonstrate a clear bearish reversal that would eventually lead towards a gruelling daily death cross on the 50 and 200 exponential moving averages.
This theory would be negated if Bitcoin can re-test the $53,000 level of resistance, which may become a possibility if dreary talk of national currency inflation continues to rear its head in Europe and the United States.
Cryptocurrencies are typically seen as a hedge against inflation, although it’s worth noting that a tapering exercise from the Federal Reserve would effectively reduce asset prices, leading investors to rush back into cash in order to stem the flow of inflation.
Tapering is expected to begin in the next six to eight weeks, with a series of anaylsts suggesting that it may mark the macro top of this multi-decade bull market in the stock market.
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:
US Dollar – BTCtoUSD
British Pound Sterling – BTCtoGBP
Japanese Yen – BTCtoJPY
Euro – BTCtoEUR
Australian Dollar – BTCtoAUD
Russian Rouble – BTCtoRUB
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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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.