At the time of writing, Bitcoin (BTC) is trading above $8,750 after price spiked during the weekend, climbing from $8,000 to almost $9,000 in the space of a few hours.
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. Of course, as more time passes, the less likely this becomes.
Let’s take a look at what’s going on with the Bitcoin markets.
Bitcoin experienced another parabolic rally this weekend, boosted by a big whale who decided to destroy some shorts and push the market upwards again. Last week I said I was expecting a pullback, which looked like it was materialising following a sharp sell-off earlier in the month. Bitcoin lost 19% in a couple of hours on May 17 and then recovered pretty much immediately by about 23%. At the moment, it’s trading above its resistance level around $8,250.
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. As we’ve already accomplished that, I personally think the bears have retreated and bulls are now in charge.
Volume-wise, we are reaching record highs again. Putting all this information together, we’re now clearly on the right path to reach $10,000 by the end of 2019. As Mati Greenspan puts it:
Well, I guess Mr. Market answered that one for us.
It's difficult to sustain the gains without them. https://t.co/9ywL9wXFpw
— Mati Greenspan (@MatiGreenspan) May 27, 2019
Hopefully the market will continue this positive momentum.
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.
*The views and opinions expressed by the author should not be considered financial advisement. The author is not a professional trader, nor investor.