At the time of writing, Bitcoin (BTC) is trading above $7,800 after price recovered during the weekend following a flash sell-off at the end of last week.
BTC is trading above its 50-day, 100-day, and 200-day EMAs after a massive spike in price earlier in May which took Bitcoin through the roof on almost all exchanges. I’m hopeful the trend will continue for the time being, but there may well be another pullback on the horizon which could take BTC back to $5,800 – $6,200.
Let’s take a look at what’s going on with the Bitcoin markets this Monday.
Bitcoin experienced another parabolic rally this weekend, boosted by the further escalation in the US-China trade war. Last week I said I was expecting a pullback, which looked like it was materialising at the end of last week. However, Bitcoin moved upwards again back to $8,200.
This marks the third time Bitcoin has touched this key level in May. The more an asset tests a given level, the higher the chances are it will eventually break it. Just don’t forget it works both ways. This means if we see Bitcoin touching the $7,000 – $7,200 level again, it could mean it will retrace back to its 20-day EMA.
I therefore advise traders to be very careful when entering new positions at the moment. Support levels above the crucial long-term zone are now found near $6,250 and $6,500, while below the $5,850 level, further strong support is found near $5,400. Volumes show a pullback has the greatest likelihood, even though I personally would like the price of Bitcoin to continue shooting to the moon.
Let’s not forget that I consider Bitcoin to be in a bull run when the 20-day EMA is above the 50-day EMA and the latter is above the 200-day EMA. We’re now clearly on the right path to reach $10,000 by the end of 2019.
Hopefully, the market will continue this positive momentum.
Safe trades!
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.
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.
*The views and opinions expressed by the author should not be considered financial advisement. The author is not a professional trader, nor investor.
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