The main cryptocurrency in the market, Bitcoin (BTC), Quoted this Friday morning, 01/20/203, at R$108,346.79. Yesterday, the bulls at the end of the day attempted a fresh bullish impulse but were stopped at the resistance between $21,200 and $21,500.
With no strength to keep Bitcoin above $21,000 after this frustrating ‘leg’, the bulls gave in to the bears who came back on top and pushed BTC to $20,900. However, the day begins with the bulls taking a fresh breath and pushing BTC higher by 0.90%.
Andre Franco, an expert at MB Research do Mercado Bitcoin, says that this price action is very similar to what happened in early 2019 and has investors excited.
“Ethereum is following a similar path and consolidating over $1,500. In the on-chain data, we got another 6k BTC cut in the hands of long-term investors, but another data broke a record: the percentage of bitcoins that haven’t moved in two years. or more, close to 50%. On Ethereum, another 34,000 ETH is locked up on the Beacon Chain.”
Fenando Pereira, chief content officer at Bitget, turns his eyes to the major US stock index, the S&P500, and notes that a look at it can save An important glimpse of what’s next for Bitcoin.
“For the fifth time in the past 13 months, the S&P500, the major US stock market pacemaker, is testing its downtrend line. It is the main resistance of this bear market, and its breakout could signal a key reversal trend and the “bottom” of the market. It is very important. Draw that line on the chart and follow it closely,” he says.
And therefore, The price of Bitcoin on January 20, 2023 is 108,346.79 Brazilian reals.
Analyst Akash Jerimath believes in a bullish scenario and highlights that the Bitcoin price has increased by 24% over the year in total, which is reflected in the long green weekly candle from January 9.
According to him, this explosion has some important repercussions that left investors confused. While some are completely bullish and expect a rally, others remain pessimistic and others are cautiously bullish.
“From a purely technical point of view, bitcoin price will need to overcome the horizontal resistance levels at $21,400 and $23,900 to have a chance of reaching $30,000 levels or higher. Add 200-day simple moving averages (SMAs) and 200-week simple moving averages into the mix it provides Much better picture. While bitcoin price has breached the 200-day SMA at $19,556, it has yet to face the 200-week SMA at $24,638.”
According to him, if these above levels are breached, BTC will have a better chance of revisiting the $30,000 barrier or resistance area, and moving from $36,260 to $42,450.
“Interestingly, the $42,450 resistance level is the midpoint of Bitcoin’s 77% drop between November 2021 and November 2022,” he says.
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 in a large, distributed public 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.
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.