Bitcoin brutally rejected from $10,000 to form lower high

Bitcoin has formed a second consecutive lower high on the daily chart following a gruelling rejection from the $10,000 level of resistance.

After surging to $10,500 on February 13, Bitcoin has suffered two tweezer top highs at $10,200 and $10,000 as it fails to gain momentum for a move to the upside.

At the time of writing Bitcoin was trading at around $9,700 following a four percent slump since the weekly candle close.

It needs to continue closing daily candles above the $9,630 level of support to avoid a dreaded breakdown in price that would bring targets of $9,320 and $8,830 into play.

If it can begin to cycle back to the upside, a close above $10,000 would indicate a clear shift in market sentiment from a short-term perspective which could lead towards a test of $10,900.

Much of it also depends on market sentiment leading up to May’s halving event, which has historically been bullish for Bitcoin and other cryptocurrencies.

The block reward halving will see miners earn just 6.25BTC per block as opposed to 12.5BTC, with a bullish theory suggesting that as supply dries up Bitcoin will begin to surge as demand begins to mount.

However, Bitcoin is an incredibly volatile asset which means that a cascade of sell orders or liquidations on derivatives exchanges could well be the trigger of a downtrend that could last for at least six months.

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Bitcoin pricing

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About Bitcoin

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.

More BTC news and information

If you want to find out more information about Bitcoin or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started.

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.