Bitcoin moves back below the $19,000 level and also below the 100/200 hour MAs

0
10

The price of bitcoin

Bitcoin

Bitcoin is the world’s largest and the first digital currency launched back 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 a single administrator. Rather, Bitcoin instead can be sent through peer-to-peer (P2P) networks, which itself is absent from any intermediaries. Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received through a type of distributed. ledger network called blockchain. Since Bitcoins are not issued or backed by any governments or central banks, it is 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 return for Bitcoin mining, computers receive rewards in the form of new Bitcoins. Over time, mining grows increasingly difficult, leading subsequent rewards to become smaller and smaller. Given the structure of code, there will only be 21 million Bitcoins. However, as of 2020, there were already 18.3 million Bitcoins in circulation. Bitcoin Making History Since its launch back in 2009, Bitcoin has remained the most popular and largest cryptocurrency by market cap in the world. Its popularity also contributed significantly to the release of thousands of other cryptocurrencies, which are now known as altcoins. At its inception, the crypto market was originally hegemonic, although nowadays the landscape contains countless altcoins. Bitcoin has also been controversial since its original launch. It has been heavily criticized for its use in illegal transactions and money laundering due to its decentralized nature. Because Bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illegal behavior. Critics also note its high electricity consumption for mining, rampant price volatility and thefts from exchanges. Bitcoin has been seen by some as a speculative bubble due to its lack of oversight.

Bitcoin is the world’s largest and the first digital currency launched back 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 a single administrator. Rather, Bitcoin instead can be sent through peer-to-peer (P2P) networks, which itself is absent from any intermediaries. Instead of being a physical currency, Bitcoins represent pieces of digital code that can be sent and received through a type of distributed. ledger network called blockchain. Since Bitcoins are not issued or backed by any governments or central banks, it is 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 return for Bitcoin mining, computers receive rewards in the form of new Bitcoins. Over time, mining grows increasingly difficult, leading subsequent rewards to become smaller and smaller. Given the structure of code, there will only be 21 million Bitcoins. However, as of 2020, there were already 18.3 million Bitcoins in circulation. Bitcoin Making History Since its launch back in 2009, Bitcoin has remained the most popular and largest cryptocurrency by market cap in the world. Its popularity also contributed significantly to the release of thousands of other cryptocurrencies, which are now known as altcoins. At its inception, the crypto market was originally hegemonic, although nowadays the landscape contains countless altcoins. Bitcoin has also been controversial since its original launch. It has been heavily criticized for its use in illegal transactions and money laundering due to its decentralized nature. Because Bitcoin is impossible to trace, this makes the cryptocurrency an ideal target for illegal behavior. Critics also note its high electricity consumption for mining, rampant price volatility and thefts from exchanges. Bitcoin has been seen by some as a speculative bubble due to its lack of oversight.
Read this Term moved back down below the $19,000 level. Currently trading at $18,983..

Bitcoin stay below the uptrend and 100-day MA

Looking at the daily chart, the rally early this week to the price back to a downward sloping trend going until December 2021 (see red numbered circles), but the rally stopped short of that level. The price also remains below its 100-day moving average (blue line in the chart above). The trend line currently enters around $20,300 and is moving lower. The 100-day moving average at $21,201.44. It would take moves above those levels to give the buyers some comfort. It is missing that than the sellers remain in control.

Drilling down to the hourly chart below, the price of the digital currency has moved back below its 100 and 200 hourly moving averages (blue and green lines in the chart below). The 100-hour moving average is at $19,260. The 200 hourly moving average is at $19,151. Staying below those levels keeps the bias to the downside short-term.

Focusing on the hourly chart, the price has been trading up and down since mid-September. The up and down price action saw the 100 and 200 hour moving averages flatten, with the moving averages converging, and going sideways.

That dynamic is indicative of a non-trending market.

Non-trending markets transition to trending markets. The question is, which way will the market break?

With the technicals now leaning more to the negative below the 100 and 200-hour moving averages (both the trendline and 100-day moving average holding resistance on the daily chart), the bias is to the downside.

However, going back above those hourly moving averages would reverse that short-term bias. A risk for sellers are those moving averages.

If the sellers are to take more control, the price would need to go below the September swing low at $18,153. Below that, and July’s low (and the low back to November 2020) at $17,592 would be the next key target to reach and break through.

Bitcoin on the hourly chart traded up and down

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here