Bitcoin continues to stubbornly trade within a tight range as it begins to coil up ahead of its next major move.
The world’s largest cryptocurrency, which has a market cap of almost $170 billion, has remained stagnant in terms of price action since the highly-anticipated halving event in early May.
Many believed that the halving would act as a catalyst for a cryptocurrency bull market as miners would need price to rise in order to stay afloat, but there has been no major changes in price in the following nine weeks.
Typically, following a period of calm Bitcoin will go on to make a devastating move in either direction, with levels of support and resistance remaining at $8,830 and $10,500.
In this case, the lack of volatility is eerily reminiscent to the tail end of 2018 in terms of price action, with Bitcoin entering a two-month period of consolidation before dramatically plunging by more than 50% in a matter of days
That isn’t to say that Bitcoin is on the brink of a major 50% correction this time around, especially as sentiment in the industry is far different to two years ago, but it does mean that a move of this magnitude in either direction could be on the cards.
The key point for Bitcoin to break above is $10,500 as this has been a point of rejection on three occasions in October, February and more recently in May.
Breaking above this level on significant volume would indicate a transition into a bull market with upside price targets emerging at $12,450 and $13,800.
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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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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.