Bitcoin experienced one of its most volatile weekends of price action in recent times as it suffered a gruelling sell-off from the $10,000 level of resistance.
It is currently trading at around $8,700 less than nine hours before the highly-anticipated Bitcoin halving event.
Rewards for miners will be slashed from 12.5BTC per block to 6.25BTC per block in an event that happens roughly every four years, or every 210,000 blocks.
While this has historically been a bullish event for Bitcoin there is the potential of an initial move to the downside as miners attempt to liquidate profits before margins get reduced.
From a technical perspective Bitcoin is desperately close to undergoing an exponential moving average golden cross on the daily chart, with the 50 EMA teetering on the brink of breaking above the 200 EMA.
This would pave the way towards an extended rally to the upside, with the lower $9,000 range coming into play.
However, a rejection from $8,830 or $9,150 during the time of the halving will come as a shock to bullish traders and investors, with it having the potential to drive price all the way down to a monthly low of $7,800.
Typically bullish events like the Bitcoin halving are often tainted by the “buy the rumour, sell the news” style of trading, which will see traders profit on the euphoria leading up to the event while taking profits just before or during when it takes place.
If Bitcoin can break back above $9,400 with conviction before today’s daily candle close it will almost certainly be primed for a re-test of the $10,000 level before the week is over.
For more news, guides and cryptocurrency analysis, click here.
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:
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 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
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.