Optimism has slowly crept back into the cryptocurrency market, albeit temporarily, with Bitcoin bouncing by 38% from the low of $3,980.
The price of Bitcoin on derivative exchanges fell to as low as $3,600, with BitMEX being forced offline for 15 minutes during a key moment in the early hours.
When BitMEX came back to life so did Bitcoin as it rallied ferociously in the following eight minutes, surging back above $5,000 before consolidating.
At the time of writing Bitcoin is trading at around $5,500, a level that is in congruence with the 200 moving average on the weekly chart.
Bitcoin has never closed a weekly candle beneath the 200 MA in its 11 year history, with it being used as a key level of support during the end of 2018 and the start of 2019.
That is why this Sunday’s close is so crucial, as a break below could trigger another long-term bear market with price targets beginning to emerge at around $1,800 and $1,150.
However, if Bitcoin can remain trading above that level it would indicate relative strength in a fairly bleak global economic environment.
Bitcoin’s reputation as a hedge to the financial system and as a safe haven was damaged tremendously by the recent decline, but if it can manage to claw itself back up as the stock market continues to stutter it will go a long way in re-establishing those beliefs.
Immediate upside price targets for Bitcoin remain at $5,900, $6,800 and $7,400 although significant volume would be needed to propel itself back above broken levels of support.
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Bitcoin pricing
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:
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About Bitcoin
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.
More BTC news and information
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 as financial advice.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.