Bitcoin has been on a parabolic run that has seen it hit all-time highs of more than $5,000 per coin. Wall Street isn’t a fan, however. Fewer than two weeks ago, the CBOE Futures Exchange went through a regulatory review and shot down the idea of adding bitcoin to their exchange. Then, just two weeks later, the SEC said they would not review a Bitcoin ETF. As a result of these negative developments, Bitcoin saw a 4% decline to just under $4,000 per coin.
Bitcoin is moving into a range that will be tough to break. On Wednesday, Bitcoin tested the short-term resistance at $12,000. On Thursday morning, Bitcoin tested the short-term support at $9,498, and it was rejected. The next support level is $9,000, which is another level that will activate.
Bitcoin is still basking in the glow of its first appearance as a major investment asset on a major index. Late last week, the cryptocurrency briefly leapt above $5,000 to hit a four-month high but then quickly retreated. The price action was driven largely by the long-awaited report from a key Wall Street strategist that found the likelihood of Bitcoin reaching $50,000 by the end of 2018 was low.. Read more about when was bitcoin at its lowest and let us know what you think.
On Thursday, Bitcoin (BTC) lost its hunger for additional increases, with price action aiming for levels below $45,000.
1 hour candle chart of BTC/USD (Bitstamp). TradingView is the source of this information.
The price of Bitcoin is approaching $44,000.
BTC/USD tested $44,200 on Thursday, according to data from Cointelegraph Markets Pro and TradingView, down over 4% in 24 hours.
The pair had spent the previous day attempting to make fresh local highs around $47,000, but significant resistance at that level eventually prevailed, and volume was insufficient to keep bulls in the game.
At the time, Cointelegraph writer Michal van de Poppe cautioned, “Slight weakening on the recent breakthrough indicating possible fatigue on the run.”
Van de Poppe evaluated the possibilities of a more fundamental Bitcoin downturn in his most recent YouTube update.
He echoed forecasts from Wednesday, saying, “Right now, I believe the majority is anticipating $48,000 to be reached before we reverse.”
“We’re either going to smash through it and go towards $55,000, or we’re going to miss it and revert back to the low $40,000s, maybe even the upper $30,000s.”
Buyer support remained weak far over $42,000 on major exchange Binance, with the significant sell block remaining in place around $47,000.
BTC/USD purchase and sell values as of Aug. 12 (Binance). Material Indicators/Twitter as a source
The golden cross is still going strong.
Meanwhile, even Thursday’s little correction would not be enough to prevent a potentially bullish occurrence on Friday’s daily chart: the golden cross.
Traders are anticipating a new altcoin season now that Bitcoin has surpassed $45K in support.
The usually bullish golden cross was still on pace to strike Friday, according to analyst and trader Rekt Capital. The 50-day moving average crosses the 200-day moving average in this scenario.
“This BTC drop isn’t enough to derail the approaching Golden Cross,” he said on Twitter, adding that BTC/USD should hold $45,200 as support to maintain its “bullish bias.”
In contrast, several golden crosses have seen later price adjustments.
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