At the time of writing, Bitcoin (BTC) is trading just above $11,340 after a sharp $500 dip over the weekend. Overall, price has dropped about 3% since last Monday.
Bitcoin has been moving steadily upwards since the start of August, with price pumping from $9,500 and powering through the $10,000 and $11,000 levels with relative ease.
Will the minor weekend correction hinder Bitcoin or will price push higher this week? Or will we see more major retracements back to the $10,000 region and below?
Chart by TradingView
As you can see from the chart above, BTC is now firmly back above its 20-day EMA after a couple of weeks of price bouncing around it.
Last week I said I expected 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.
At the moment, I believe we’ll continue to push higher up, especially after the US Federal Reserve’s recent rate cut and the US-China trade war wreaking havoc on the traditional financial markets.
Volume seems to be recovering as well. Over the past month, volume has gone from $20 billion to $27 billion then back to $14 billion in late July. At the moment, we’re back above $14 billion and on a good trend towards $20 billion.
Bitcoin’s market dominance has also increased slightly from 66% to 68%.
Hopefully this latest downturn was just a bump in the road and the market will continue its positive momentum once again. 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.
Safe trades!
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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 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.
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 financial advisement.
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