Bitcoin endured a turbulent weekend of price action after falling to as low as $8,670 before bouncing back to the $8,830 level.
The plunge in price comes after a 12-day period of consolidation following the failure to break out above $10,000 on the second occasion.
It has caused key moving averages on lower time frames to tick back to the downside, indicating that a further correction may be on the cards this week.
The four-hour 50 EMA seems as though it will cross the 200 EMA to the downside within the next five days unless Bitcoin can trade back above the $9,350 region.
If Bitcoin fails to establish a level of support above $9,000 it remains likely that it will retest the monthly low of $8,100, although some analysts are suggesting it could drop to as low as $7,100 as this was the price on the yearly open.
From a higher time frame perspective Bitcoin remains in a more bullish pattern as it trades above key moving averages on the daily chart, with the relative strength index also on the brink of a bounce.
However, from a fundamental standpoint transaction fees are soaring while hash rate continues to decline, which paints a negative picture moving into Q3.
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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.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.