Bitcoin continues to grind against the $7,450 level of resistance ahead of the typically low volume holiday weekend.
The period of relative calm comes after a volatile month that saw Bitcoin slide all the way to $3,600 on certain exchanges before recovering significantly.
With the block reward halving being just one month away traders may attempt to price the event in, which would see Bitcoin rise to at least $8,100 from a short-term perspective.
However, it initially needs to break above $7,450 to demonstrate bullish momentum with an upside price target continuing to emerge around the daily 200 moving average at $8,080.
The daily relative strength index (RSI) is also at a critical level of 56.22, which is the highest it has been since 24th February, when Bitcoin was trading at $10,000.
A rejection from here in terms of the RSI and price will likely cause a continuation of the macro downtrend with Bitcoin looking like it may re-test 2018 lows of $3,150 before a potential reversal.
While it’s true that previous halving events have led to a new Bitcoin all-time high, it historically doesn’t happen for at least six to twelve months after the event itself, meaning that if the theory comes to fruition, Bitcoin won’t break $20,000 until 2021.
Over the weekend Bitcoin needs to avoid breaking back below $6,800 as it tries to force a breakout to $8,000, key levels of resistance to look out for above $8,000 are at $8,475 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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