At the time of writing, Bitcoin (BTC) is trading at just above $9,937 after losing about 4% in value since last week.
BTC experienced a substantial pump earlier in the month which saw price jump from $10,000 to a peak of around $10,900. Price quickly retraced to around $10,200 and has now dropped below the psychological $10,000 level once more.
Following a number of lower highs, Bitcoin now seems to be in a short-term downtrend, with price in danger of dropping below its 50-day EMA.
Will price recover back to $13,000 and above? If so, when?
Let’s take a look at Bitcoin’s chart.
As you can see from the chart above, BTC is now back to trading between its 20-day EMA and 50-day EMA. Price was swinging between these EMAs for all of last week before it finally closed above both of them.
Last week, I stated Bitcoin should bounce between $9,000 and $11,000 before making its way upwards again towards the $12,000 and $13,000 levels and above, which seems to be the case.
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 with the ECB’s recent rate cut and the US-China trade war wreaking havoc on the traditional financial markets.
Moreover, traditional investment bonds are also showing signs of weakness, with some offering terribly low yields – in some countries (Germany and Switzerland, for example) ten-year yields are offering lower rates than two-year yields. This could see more people turning to Bitcoin as they seek to make better use of their money and also safeguard it against a possible global recession.
Volume has dropped from a peak of $27 billion earlier in the year to around $12 billion now, although it’s currently on a positive trend towards $13 billion. If volume drops lower than $10 billion, I’d expect price to break to the downside. Still, we’re not there yet, and there’s plenty of time to recover.
Bitcoin’s market dominance has also decreased slightly from 70% to 68%, according to CoinMarketCap.
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.
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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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.