Bitcoin is enduring a troubling period of bearish pressure after re-testing the $11,430 level of support for the second time in three days.
The previous touch of this support prompted a 3.14% bounce to the upside, although failure to achieve a high above $12,000 and even $11,900 demonstrates bullish exhaustion.
If Bitcoin begins to trade beneath this level of support it will likely cause a sharp drop to $11,150, which may be extended depending how many long positions get put into liquidation across derivatives exchanges.
Breaking below this level would also suggest that Bitcoin has undergone a trend reversal, which means the local high of $12,500 will remain untested until a bullish catalyst or news event drives it back to the upside.
Key levels of support to look out for to the downside are at $10,920 and $10,550, although there is a slight possibility that Bitcoin will fill the gap on its CME Futures contract down at $9,400.
However, for the time being Bitcoin continues to trade around the $11,430 level of support, if it can bounce from here back to the $11,900 region it would indicate that buyers are keen on supporting the price, which would pave the way for a longer period of consolidation.
Key triggers to the upside remain at both $12,050 and $12,500, if Bitcoin can break above these with an influx of trade volume it could well be on track to form a new all-time high by the end of the year as it would undoubtedly confirm a cryptocurrency bull 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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