Bitcoin is on the brink of a major breakout above a key level of resistance after it tested $9,400 again yesterday evening.
All of the dominoes have seemingly fallen into place for Bitcoin as it approaches its third block reward halving in 11 years, with several analysts claiming that it will act as a catalyst for another bull market.
The crucial level of resistance to look out for is $9,550 as this dates back to the $20,000 top in December 2017 with rejections coming along the way at $13,150, $12,500 and $10,500.
Being able to close a daily or weekly above $9,550 would signify a clear shift in the market from in May when Bitcoin fell to as low as $3,850.
If a move to the upside happens this weekend it would indicate a period of bullish trading over the coming weeks with targets beginning to emerge above $13,000.
However, a breakout is by no means a matter of certainty as bearish pressure remains rife in the $9,400 region, as demonstrated during yesterday’s daily candle close.
This could mean that while several factors are pointing towards a bullish break of $9,400 and $9,550, a rejection would cause a gruelling correction back down to the $8,830 level of support.
Another thing to be cautious of is the amount of positive and euphoric sentiment moving into the halving, this could act as a counter indicator especially if Bitcoin doesn’t rally in the days following the event.
With so many traders and investors expecting that Bitcoin will rise a correction to the downside would be far more painful, especially with a mounting number of leveraged long positions being trapped above $9,000.
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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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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.