04 January, 2022

Bitcoin remains on the back foot on the day after its 13th birthday

04 January, 2022

By Samuel Indyk

Investing.com – 13 years on since Satoshi Nakamoto mined the first Bitcoin block, known as the Genesis block, Bitcoin is trading with slight losses. On January 3rd 2009, the Genesis block was created, marking the beginning of the blockchain.

13 years have passed since then and the value of Bitcoin surged to its record high of $69,000 in November last year, however, a drop in December saw the world’s largest cryptocurrency fall below $50,000. On 3rd January Bitcoin fell back below $46,000 although has since traded back above that level and currently trades around $46,700.

Over the last week, Bitcoin is down around 5% despite a record high for the S&P 500 in the US on the first trading day of the year for US stocks.

Technical Picture
To resume its upside momentum, Bitcoin will have to reclaim the 200-day moving average, which currently resides around $48,000.

The next level of resistance to the upside could be the psychological $50,000 level and then the 50-day moving average around $51,600.

On the downside, the level around $45,500-$45,700 looks to be key support that has been tested and held throughout December and early January.

A break below that level could open the door to the “flash crash” low from 4th December, when Bitcoin dropped to $42,600.

Altcoins
Other major cryptocurrencies are trading mixed to start the year. Decentralised Finance related coins such as Ethereum, Solana and Cardano are trading flat to slightly lower.

Dog-related meme-coins are also trading slightly lower with Dogecoin and Shiba Inu both trading with losses of around 1.5% in the last 24 hours.

Source: uk.investing.com

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