Despite forming a bullish higher high, Bitcoin was unable to stop itself from succumbing to a dramatic sell-off that saw a slump as low as $9,720 overnight.
The move to the downside came after a tremendous rally that defied all odds by surging to above $10,180 – rising by 12% in the past week.
Numerous technical aspects of the chart are indicating the rally may continue into the rest of February, with the recent golden cross complementing yesterday’s confirmed higher high.
The sell-off seems to be tied quite prominently to Bitcoin futures on the CME as the decline continued to $9,500 before bouncing back towards $10,000.
It’s worth noting that as the CME closes trading for the weekend a gap formed between $9,860 and $10,200.
Gaps in traditional markets are often exploited and capitalised upon by traders as, more often than not, a gap soon gets filled following formation.
However, now the gap on the CME has been filled there is little stopping Bitcoin from continuing its drive to the upside, as long as it keeps trading above the $9,620 level of support.
A break below $9,620 would invalidate the newfound bullish optimism in the market, with initial downside targets emerging at $9,300 and $8,830.
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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.
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