Bitcoin is currently trading back above the psychological level of resistance at $50,000 following a tremendous 72.91% surge over the past month.
The world’s largest cryptocurrency is now eyeing up the historical levels of resistance at $50,500, $51,200 and $52,300 as speculation mounts over whether this is a bullish reversal or a gruelling bull trap.
Both scenarios carry weight, with the chart displaying various signs of strength, including a bullish weekly MACD cross, an exponential moving average golden cross and an expansion in volatility.
In terms of a potential bull trap, the lack of trade volume compared to January’s rally is telling. It suggests that retail involvement in the move has been far less significant, and that the hike in price is a result of a lack of sell-side liquidity.
This means that when Bitcoin approaches a level where miners and traders begin to sell, the move to the downside will be more violent as supply will outweigh the below-par levels of demand.
In order for a bull trap to play out, open interest will need to rise alongside leveraged long positions above $50,000 as this would provide fuel for a move back to the $40,000 mark.
Bitcoin’s apparent rise from the ashes has had a subsequent impact on the entire cryptocurrency market, with the likes of Cardano, Ethereum and even Dogecoin all enjoying momentous rallies over the past month.
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Bitcoin pricing
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:
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Euro – BTCtoEUR
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Russian Rouble – BTCtoRUB
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
If you want to find out more information about Bitcoin or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started.
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.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.