Despite a brief rally to $11,750 on Monday afternoon, Bitcoin is back trading at $11,335 as it continues to gather momentum before a potential test of $12,000.
The world’s largest cryptocurrency intriguingly bounced off the four-hour 50 exponential moving average this morning just days after a bullish golden cross.
The fact that Bitcoin is now using these levels as support reinforces the bullish narrative that is currently being touted across cryptocurrency social media channels.
However, price action will not always follow market sentiment. Bitcoin’s fear and greed index is currently at a 56, indicating that a sell-off may soon be on the cards.
As prominent influencers and analysts call for a new Bitcoin all-time high, seasoned traders will be treating the swift change in sentiment as a sell signal.
A break down in price from this current level would not only demonstrate bullish exhaustion in the form of a lower high, but it would also see Bitcoin fall back below the purchasing price of MicroStrategy and Square.
Institutional investment into cryptocurrencies works both ways; it has the potential to cause volatile moves to the upside to a lack of liquidity on order books, but it also means that sell-offs could be more severe as these institutions will look to preserve their capital.
From a technical perspective, Bitcoin needs to break above $12,000 with conviction before it can confirm its presence in a bull market, while a break back below $10,500 could pave the way to a further 20% correction.
For more news, guides and cryptocurrency analysis, click here.
Bitcoin pricing
Current live BTC pricing information and interactive charts are available on our site 24 hours a day. The ticker bar at the bottom of every page on our site has the latest Bitcoin price. Pricing is also available in a range of different currency equivalents:
US Dollar – BTCtoUSD
British Pound Sterling – BTCtoGBP
Japanese Yen – BTCtoJPY
Euro – BTCtoEUR
Australian Dollar – BTCtoAUD
Russian Rouble – BTCtoRUB
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.