The main cryptocurrency in the market, Bitcoin (BTC), Quoted on this Wednesday morning, 18/01/203, at R$108,292.37. The bulls are starting to show signs of exhaustion and the bitcoin price has practically not moved in the past 24 hours, which indicates that despite the increase, the trading volume is still low.
Mike McGlone, a strategist at Bloomberg, said that the bottom of the cryptocurrency market has already been crossed. He noted that the graphs are similar to the situation in 2018, although the macroeconomic situation is completely different. At that time, the Federal Reserve had already begun to ease its policy, but now it is very far away, “so anything can happen.”
It is possible to see the current movement as the beginning of a sideways trend, but it differs from what we have seen this year, said Andre Franco, an expert at MB Research on the bitcoin market. In the past, this trading range could be a pause for a new high rather than a decline.
“This was the new reality of the market, the rise of bitcoin was not accompanied by an altcoin and so the dominance continued to rise. On the Ethereum network, we have added over 10,000 ETH to the beacon chain,” he highlights.
And therefore, The price of Bitcoin on January 18, 2023 is R$108,292.37.
Bulls x Bears
Bitcoin price rose sharply in January 2023 after dropping to new lows in the wake of the FTX crisis last November. The cryptocurrency jumped from $15,479 on November 21 to a new high of $21,594 on January 17.
“There are indications that the short to medium trend has turned for Bitcoin after breaking above the critical high of $21,473 on November 5. This breakout is an important sign that the broader downtrend may be reversing.” , explained Ecta Morea.
But it does indicate that according to the Relative Strength Index (RSI), which is currently above 70 on the daily chart, Bitcoin is overbought.
“The RSI can remain overbought for some time before the market starts to pull back, and according to Welles Wilder, the market technician who designed the indicator, only after it breaks out of the overbought zone and re-enters the neutral zone below 70, these A strong signal to sell can be found.
While overbought, Wilder advised traders not to increase their long positions. However, on the 4-hour chart, the RSI has already dropped below 70, providing traders with a sell signal and hinting at the possibility of a pullback in this time frame.”
What is bitcoin?
What is bitcoin? Bitcoin (BTC) is a digital currency that is used and distributed electronically. Bitcoin is a peer-to-peer decentralized network. No person or organization controls it.
Bitcoin cannot be printed and its quantity is very limited – only 21 million Bitcoins can be created. Bitcoin was first introduced as open source software by an anonymous programmer or group of programmers under the codename Satoshi Nakamoto in 2009.
There have been many rumors about the true identity of the creator of BTC, however, all of the people mentioned in these rumors have publicly denied that they are Nakamoto.
Nakamoto himself claimed to be a 37-year-old man living in Japan. However, due to its excellent English and its software not being developed in Japanese, there are reasonable doubts about this information. Around the middle of 2010, Nakamoto went into other things and left Bitcoin in the hands of some prominent members of the BTC community.
For many people, the main advantage of bitcoin is its independence from global governments, banks, and corporations. No authority can interfere with BTC transactions, charge transaction fees, or take money from people. Moreover, Bitcoin’s movement is highly transparent – every single transaction is stored on a large, public, distributed ledger called Blockchain.
Essentially, since Bitcoin is not controlled as an organization, it gives users complete control over their finances. The Bitcoin network shares a public ledger called the “block chain”. This ledger contains all the transactions that have been processed. The digital records of transactions are combined into “blocks”.
If someone tries to change just one letter or number in a block of transactions, it will also affect all subsequent blocks. Due to the fact that it is a public ledger, an error or attempted fraud can easily be detected and corrected by anyone.
The user’s wallet can validate each transaction. The authenticity of each transaction is protected by digital signatures corresponding to the sending addresses.
Due to the verification process and depending on the trading platform, it may take a few minutes for a BTC transaction to complete. The Bitcoin protocol is designed so that it takes about 10 minutes to mine each block.
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Disclaimer: This is not an investment recommendation and the opinions and information contained in this text do not necessarily reflect the positions of Cointelegraph Brasil. Every investment must be accompanied by research and the investor must be informed before making a decision