Bitcoin is expanding outside the upside and downside consolidation range. Hold near the retracement target


Bitcoin broke above 50% and the top of the trading range

Yesterday the price of bitcoins

Bitcoin

Bitcoin is the largest and the first digital currency in the world launched in 2009 by the entity Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it operates without a central bank or single administrator. Instead, Bitcoin can be sent through a peer-to-peer (P2P) network, which itself is devoid of any middlemen. Instead of being physical currency, Bitcoins represent pieces of digital code that can be sent and received over some sort of distributed network. ledger network called blockchain. As bitcoins are not issued or backed by any government or central bank, they are considered legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for mining Bitcoin, computers receive rewards in the form of new Bitcoins. Over time, mining becomes more and more difficult, causing subsequent rewards to become smaller and smaller. Given the structure of the code, there will only ever be 21 million Bitcoins. However, in 2020 there were already 18.3 million Bitcoins in circulation. Bitcoin Making HistorySince its launch in 2009, Bitcoin has remained the most popular and largest cryptocurrency by market capitalization in the world. Its popularity has also contributed significantly to the release of thousands of other cryptocurrencies, now known as altcoins. In its early days, the crypto market was originally hegemonic, although currently the landscape contains countless altcoins. Bitcoin has also been controversial since its initial launch. It has been heavily criticized for its use in illegal transactions and money laundering given its decentralized nature. Since bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illicit behavior. Critics also point to its high electricity consumption for mining, widespread price volatility and stock exchange theft. Bitcoin has been viewed by some as a speculative bubble given its lack of oversight.

Bitcoin is the largest and the first digital currency in the world launched in 2009 by the entity Satoshi Nakamoto. Being a digital currency, a defining feature of Bitcoin is that it operates without a central bank or single administrator. Instead, Bitcoin can be sent through a peer-to-peer (P2P) network, which itself is devoid of any middlemen. Instead of being physical currency, Bitcoins represent pieces of digital code that can be sent and received over some sort of distributed network. ledger network called blockchain. As bitcoins are not issued or backed by any government or central bank, they are considered legal tender. Transactions on the Bitcoin network are confirmed by a network of computers (or nodes) that solve a series of complex equations. This process is called Bitcoin mining. In exchange for mining Bitcoin, computers receive rewards in the form of new Bitcoins. Over time, mining becomes more and more difficult, causing subsequent rewards to become smaller and smaller. Given the structure of the code, there will only ever be 21 million Bitcoins. However, in 2020 there were already 18.3 million Bitcoins in circulation. Bitcoin Making HistorySince its launch in 2009, Bitcoin has remained the most popular and largest cryptocurrency by market capitalization in the world. Its popularity has also contributed significantly to the release of thousands of other cryptocurrencies, now known as altcoins. In its early days, the crypto market was originally hegemonic, although currently the landscape contains countless altcoins. Bitcoin has also been controversial since its initial launch. It has been heavily criticized for its use in illegal transactions and money laundering given its decentralized nature. Since bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illicit behavior. Critics also point to its high electricity consumption for mining, widespread price volatility and stock market theft. Bitcoin has been viewed by some as a speculative bubble given its lack of oversight.
Read this term moved up to test an upper swing zone AND the 50% downside move from the Sept 12 high (see post here). This level came in at $20,469. The high price reached $20,411 – just below that target – and pulled back.

The decline from the high at $20,411 saw the price drop to test the broken 38.2% of the same decline at $19,923. The low reached $19,971 just above this target. Buyers came back and pushed higher.

Today the price was able to extend above the 50% and for most of the day stay above that 50% level. The high reached 61.8% of the same move lower at $21,014. The high of the day reached $21,012. The sellers leaned in and the price went lower again. The current price is trading at $20,716.

Now that bitcoin price has been able to break out of short-term highs and lows, what does the daily chart look like? What are the techniques on this chart saying?

The chart below is the daily chart and looking at it highlights the confined trading range the pair has been mired in since September 12th. The digital currency has barely moved. There is definitely room to roam.

It is also important that the 100-day MA is currently at $20,910. The high price reached today above this level at $21012, $102 above the MA level. However, the break could not be maintained on the face of it since September 12 and 13. The price at $20716 is below this MA level.

Bitcoin on the daily chart tests the 100-day MA

And now?

If the bulls are to finish what they started by breaking through the 50% decline from the September high on the hourly chart, price MUST break above the 100-day MA and stay above this key barometer of the hourly chart. MM. The last two attempts in September and before the one in August were only able to move for two days. This is the 3rd try.

Tomorrow will give traders the 2nd shot to move above this 100 day MA and stay above it. Fail to do so, and it looks like August. It looks like September. Conversely, if price can reach and stay above the 100-day MA, buyers have their chance to take advantage of the break.

So overall the buyers are playing on the hourly chart. The price action in bitcoin has not been trending. There is room to break and run. However, if this is to happen, there is work to be done. Getting and staying above the 100 day MA is required. Without it, and buyers do not earn. They try but they don’t win.

On the downside, if during a correction the price can stay above the 50% level at $20,469, the buyers are still in. Move below and all bets for the buyers. They had their shots. They missed.


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