Bitcoin is experiencing a momentary pullback following a sensational move to the upside that saw it kiss $52,999 before losing momentum.
The world’s largest cryptocurrency remains steeped in a barnstorming uptrend, demonstrated by a series of higher highs and higher lows.
While sceptiscm continues to play a part in this rally due to significantly less volume than February’s move above $50,000, it’s worth noting that far fewer levels of supply are appearing on exchanges.
On the short-term time frames, Bitcoin is testing the $50,500 level as it attempts to secure it as a line of support rather than the point of resistance it was last week.
If price drops below $50,500 Bitcoin could begin to enter its first downtrend since late July, although it would likely need a sustained slump with daily candles closing below $46,500 to from a lower low.
On a macro scale the recent price action can be analysed as one of two things – a bullish reversal, or a bull trap.
A bull trap caught many off-guard in 2018, Bitcoin plunged from $20,000 to $6,000 before providing traders with a brutal pattern that saw it double to $11,800 and tumbling into a gruelling bear market.
If this is a bullish reversal, as several analysts are suggesting, it would replicate the 2013 bull market that is often dubbed “double bubble”. It would likely mean Bitcoin is going to surpass its $65,000 all-time high over the next six months before putting in a major top before entering a two-year period of consolidation.
Levels of support remain at $50,500, $49,450, 48,360 and $46,500, while points of resistance are at $51,300, $52,200 and $53,000.
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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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