Bitcoin seems to have re-entered a phase of reaccumulation following a relatively surprising plunge that saw it fall to as low as $11,550 before finding support.
The world’s largest cryptocurrency currently has a market cap of $217 billion following the recent rally that has taken it from below $9,000 to the weekend’s high of $12,500.
From a technical perspective Bitcoin remains in a bullish formation as long as it trades above the $11,000 level of support.
It also bounced from the diagonal trendline dating back to the break out on July 27, which indicates that there simply isn’t enough bearish pressure to spur a corrective move to the downside.
If Bitcoin can begin to close four-hour candles back above the $12,000 mark before the typically low-volume weekend it would set itself up for a rally to a new yearly high before the end of the month.
However, another rejection from $12,000 would signal that the recent break out to $12,500 was in fact a bull trap and that it could be in store for more downside price action.
When looking at the daily exponential moving averages, the fact that the 50EMA crossed the 200EMA in May, with all moving averages continuing a positive slope since then, demonstrates Bitcoin’s positive outlook in a macro sense.
While the recent rally has been attributed to this rise in popularity of DeFi projects on the Ethereum blockchain, Bitcoin is almost certainly the largest brand in the industry, which means retail investors will flock to it during the next bullish phase in the market.
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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.