Bitcoin is setting its sights on a weekend breakout above $11,000 following a positive week that has seen it springboard from just beneath $10,000.
Closing a daily or weekly candle above $11,000 would trigger a period of continuation to the recent high of $12,500, which remains a bitter point of resistance.
The recent rise from $10,000 coincides with record-levels of investment from the likes of MicroStrategy, who revealed a $235 million purchase of Bitcoin earlier this week.
This level of institutional investment has the potential to lift Bitcoin into a new paradigm, with the current market cap of $200 billion considered to be relatively small if Bitcoin truly becomes a store of value and a hedge to the traditional financial system.
From a technical perspective, as long as Bitcoin closes Friday’s daily candle above $11,000 it will confirm that short-term momentum is favouring the upside, which would pave the way towards an initial move to $11,350.
If, however, Bitcoin fails to close above $11,000 it faces a nervous wait this weekend to see if the weekly candle can make any progress when it closes on Sunday evening.
A break down in price from here considering the bullish news over the past week would be a woeful turn of events for investors, as it would indicate a level of exhaustion among buyers which would see the market enter another period of consolidation.
Key levels of support to the downside remain at both $10,650 and $9,880, although there is also a potential CME gap-fill scenario in the lower $9,000’s.
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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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