At the time of writing, Bitcoin (BTC) is trading just below $9,530 after falling significantly following last week’s mild recovery, which took BTC back above its 20-day EMA.
Bitcoin fell from $10,000 in the week to as low as $9,000 during the weekend before powering back above $9,500 in the space of a few hours on Sunday.
Will Bitcoin push higher this week? Or will we see more major retracements back to the $9,000 region and below?
As you can see from the chart above, BTC has dropped down to its 20-day EMA, where price has bounced slightly. Still, it is quite close to its early July lows.
What I expect to happen is for price to bounce between $9,000 and $11,000 before making its way upwards again towards the $12,000 and $13,000 levels and above.
Even though the trend is our friend, there is the potential for significant retracements that would see price touch or even drop below Bitcoin’s 100-day EMA. Remember that in the previous bull run, price retraced between 30% to 40% a few times before reaching all-time highs.
Volume seems to be following the downtrend as well. Over the past month, volume has gone from $20 billion to $27 billion and is now sitting around $14 billion. Also, Bitcoin’s market dominance has dropped slightly to 65%.
Hopefully this latest downturn is just a bump in the road and the market will pick up its positive momentum again soon. Looking at the overall market behaviour, I’m quite confident that we’re still in a bull run – or at least that’s what my analysis shows.
Current live Bitcoin 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:
US Dollar – BTCtoUSD
British Pound Sterling – BTCtoGBP
Japanese Yen – BTCtoJPY
Euro – BTCtoEUR
Australian Dollar – BTCtoAUD
Russian Rouble – BTCtoRUB
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 3rd January 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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*The views and opinions expressed by the author should not be considered financial advisement. The author is not a professional trader, nor investor.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.