Bitcoin is on the brink of a bullish breakout above $8,000 after surging to $7,400 on Tuesday morning.
The world’s largest cryptocurrency has now risen by 13.66% over the past week with a further 2.88% gain being printed today.
An upside target when analysing the chart has emerged at $8,080 as it is a historical level of resistance that is in confluence with the daily 200 moving average.
A break above that point would indicate that the short-term downtrend has now finished and that Bitcoin has reversed into a bullish posture.
It would also tie in with the upcoming block reward halving, a historically bullish event due to a reduction in supply going onto the market.
Hash rate has also bounced back from a 29% decline two weeks ago to demonstrate newfound competition between miners.
However, while Bitcoin seems bullish on both a technical and fundamental standpoint, an initial rejection from $7,400 may slow the transition towards a short-term bull market.
A decline in price from here would see Bitcoin re-enter the indecisive level below $6,800, which could prolong sideways price action.
Closing this evening’s daily candle below $7,000 will be a major cause for concern for bullish Bitcoin traders as it will indicate a clear lack of momentum.
It’s worth noting that Bitcoin traded within the $6,500 and $7,800 range for six weeks at the end of 2019, which came before an eventual rally to $10,500 in February.
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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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