Bitcoin is currently trading back below the $32,000 level following a significant rejection from $33,200 overnight.
The world’s largest cryptocurrency by market cap has now formed five consecutive lower highs and three subsequent lower lows, which reinforces the ongoing theory of bullish exhaustion.
July’s price action is shockingly similar to what Bitcoin went through in middle stages of the 2018 bear market, with volume falling off a metaphorical cliff alongside a steady corrective move to the downside.
In order for Bitcoin to show even the slightest glimmer of hope, it needs to break the lower high structure by closing a four-hour candle back above the $34,300 level before setting its sights on the $34,800 level of resistance.
In the short term, however, it needs to make sure it doesn’t close any daily candles below the $31,000 mark as this would confirm a break down of structure.
The lowest daily close since January has been at $31,660, which is indicative of strong support in this current region.
It’s also worth noting that MicroStrategy’s break-even point on its $3.3 billion Bitcoin investment is at $26,080. This will undoubtedly become a key pivot point in price action as speculators will begin to question whether Michael Saylor’s company will begin to liquidate its holdings.
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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.
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