As the typically low volume weekend looms, Bitcoin continues to act indecisively after failing to breakout above the key $7,000 level of resistance.
The majority of global stock markets have shown clear signs of recovery over the past three years, with the Dow Jones rallying by 26%.
However, the rise hasn’t trickled across to cryptocurrencies with Bitcoin seemingly remaining the most steady of all global assets.
A clear break below $6,400 will present an opportunity for bearish traders to drive it back below the $5,900 level of support, which will reinforce the recent death cross.
The daily 50 EMA crossed the 200 EMA the downside on 14th March, with it historically being a very bearish pattern in the history of Bitcoin.
It would not be impossible for Bitcoin to be dealt a further 50% correction from here, which would take price to 2018’s low of $3,150.
Much of it will depend on the impact of Coronavirus and the recovery of global stock markets, with Bitcoin showing clear signs of correlation since the turn of the year.
The Bitcoin halving later this year may also have some impact on price as it will see block rewards for miners halved from 12.5BTC per block to 6.25BTC per block, which will theoretically reduce supply.
If Bitcoin can manage to defy all odds by breaking out above $7,000, this weekend price targets remain at $7,400 and $8,190, which is also in confluence with the daily 200 EMA.
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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.