Bitcoin is currently trading back above $34,500 for the first time in four days following a 6.72% rally on Monday morning.
The world’s largest cryptocurrency is now setting its sights on the $36,300 level of resistance after it broke down from that point on January 20.
Breaking above it on significant volume would indicate a shift in market sentiment, with a bullish bias returning following MicroStrategy’s additional Bitcoin investment on Friday.
The funding rate across derivatives exchange is also beginning to creep up with OKEX at 0.09% and FTX at 0.08%.
This demonstrates how traders have opted to long the recent drop with margin, which could provide the fuel for a breakout above $36,300.
However, it’s worth noting that Bitcoin has now formed both lower lows and lower highs on the daily chart, which indicates a short-term downtrend following the remarkable rally to $41,000 at the turn of the year.
If Bitcoin can close a daily candle above at $36,800 or above, it would invalidate the recent trend to highlight a bullish reversal.
Upside targets in this scenario would be at the all-time high of $41,000 extending up to as high as $49,000.
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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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