Bitcoin is currently trading at $47,540 after it was dealt a bitter rejection from the psychological level of resistance at $50,000 overnight.
The world’s largest cryptocurrency, which has a market cap of $883 billion, remains in a bullish posture on all higher time frames after closing its highest ever weekly candle at $48,550 on Sunday.
There are, however, a number of warning signs on lower time frames as bulls begin to show signs of exhaustion after failing to breach $50,000.
Bearish divergence has now been confirmed on the four-hour, with the RSI printing consistent lower highs while price action formed higher highs since February 9.
A bearish cross on the 12-hour MACD also came into fruition last night after it crossed to the upside on January 28.
It’s worth noting that Bitcoin has rallied by more than 57% since the bullish cross, which suggests that a correction back down to the $41,000 region may be on the cards depending on tonight’s daily close.
Even if it corrects to the low $41,000 mark, Bitcoin would still be considered bullish on all higher time frames with the $50,000 price target becoming a realistic expectation over the next four to six weeks.
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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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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.