Bitcoin remained in a tight trading range over the weekend as volatility and volume both experienced a notable downturn.
At the time of writing it was trading at $43,450 as it attempts to establish a key level of support above the $43,000 region.
Last week presented Bitcoin with two major warnings, with the Evergrande debt crisis in China sending shockwaves across global capital markets, as well as an effective ban on cryptocurrency trading from the Chinese central bank.
On both occasions Bitcoin tested the $40,000 level of support before being met by a barrage of buyers, many of whom remain stubborn in their belief that Bitcoin will achieve an all-time high over the next six months.
However, with the uptrend from $28,800 to $53,000 now having broken, Bitcoin needs to avoid a series of lower highs and lower lows by printing a daily candle back above the $48,500 level of resistance.
Failure to do this could well see downside pressure begin to mount again, with downside price targets beginning to emerge at $37,400 and $35,000.
A daily closure below $39,500 would indicate that the bear market is in and that the $53,000 high was indeed a bull trap and not a bullish reversal.
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:
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 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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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.