Bitcoin is lining up a third major attempt at breaking out above $10,000 ahead of the expiry of the CME’s Bitcoin futures contract.
The expiry of the contract will see 50% of open interest also expire, which is expected to cause volatile swings in the price of Bitcoin at the start of next week.
During the first week of May the CME reported that open interest for its Bitcoin contract had hit an all-time high after it recovered from the gruelling sell-off in March.
At the time of writing Bitcoin is trading at $9,400 after falling slightly from this morning’s high at $9,623.
Moving forwards if Bitcoin can continue to trade above $8,830 and $9,200 in the short term it will continue to assert a bullish bias, while a break below these levels of support could cause a sell-off to as low as $7,100, which was the yearly open.
High frequency traders, however, will be targeting a move to the upside over the coming weeks with the $10,000 level proving to be a bitter point of resistance.
Breaking above a psychological level like $10,000 would indicate a change in behaviour from traders, with bullish price sentiment slowly returning after the recent halving event, which in truth turned out to be anticlimactic.
As seen during the bullish phase in the market last year there are still a number of key levels of resistance above $10,000, notably $10,500 and $12,300, although what’s most important is that Bitcoin prints a lower high for the first time in 12 months.
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.