Bitcoin bounced off the seemingly resilient $8,830 level of support over the weekend as it flirts with the potential of a bearish break down in price.
The world’s largest cryptocurrency is currently trading at $9,100, which is in the same range that it has been trading it for the past two months.
After forming consecutive highs at $10,000, with two spikes to test $10,500, Bitcoin seems to have lost bullish momentum in the short term.
With the $8,830 level being tested multiple times since April 30, a break down in price seems to be on the cards with downside price targets emerging at $8,450, $8,100 and $7,800.
Diving deeper into the technicals of the chart, there is an element of bearish divergence on the daily RSI as the negative slope outweighs that of price action.
However, as long as Bitcoin trades above the daily 200 moving average, which is currently at $8,355, it remains in a more bullish market phase than earlier this year when it plummeted to as low as $4,000.
Much of the upcoming price action will depend on how global stock markets perform, with Bitcoin showing positive correlation against the S&P500, which is at a critical point of 3,000.
A potential rise in global covid-19 cases, particularly in the United States, has the potential to derail bullish continuation in capital markets as uncertainty surrounding the virus begins to resurface.
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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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