Bitcoin is currently trading back above $34,500 for the first time in four days following a 6.72% rally on Monday morning.
The world’s largest cryptocurrency is now setting its sights on the $36,300 level of resistance after it broke down from that point on January 20.
Breaking above it on significant volume would indicate a shift in market sentiment, with a bullish bias returning following MicroStrategy’s additional Bitcoin investment on Friday.
The funding rate across derivatives exchange is also beginning to creep up with OKEX at 0.09% and FTX at 0.08%.
This demonstrates how traders have opted to long the recent drop with margin, which could provide the fuel for a breakout above $36,300.
However, it’s worth noting that Bitcoin has now formed both lower lows and lower highs on the daily chart, which indicates a short-term downtrend following the remarkable rally to $41,000 at the turn of the year.
If Bitcoin can close a daily candle above at $36,800 or above, it would invalidate the recent trend to highlight a bullish reversal.
Upside targets in this scenario would be at the all-time high of $41,000 extending up to as high as $49,000.
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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.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.