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Bitcoin Stumbles at $9,200 As Bitcoin SV Soars Again

January 20, 2020 at 15:04 by Matt Jackson

Bitcoin prices breached $9,000 resistance yesterday, reaching as high as $9,198.97 before losing more than $500 in less than an hour. Prices have stabilised at around $8,600 today, and most of the crytocurrency market has remained roughly stable over the past 24 hours. Bitcoin SV is the one exception, posting 15% gains in the past 24 hours, following speculation over founder Craig Wright being Bitcoin founder Satoshi Nakamoto and ahead of the coin’s hard fork which is set for the beginning of February.

Even by cryptocurrency standards, Bitcoin has enjoyed an exceptional start to 2020. When its price peaked at over $9,000 yesterday, the digital currency had seen gains of nearly 30% in less than three weeks, having started the year at $7,200. Having initially broken through the $9,000 barrier yesterday, BTC bulls then attempted to take $9,200 but stumbled and fell back to $8,600, posting a 6% loss in less than an hour. Since then, prices have stabilised while volume has remained relatively high, suggesting another attempt to take and hold $9,000 is incoming. Analysts have warned that Bitcoin might have to defend support at $8,450 before a significant move up is completed.

Bitcoin is expected to fork in May, and many have pointed to this as being a major driver in the cryptocurrency’s recent price gains. Later in the year, there is also a soft fork, expected in the last quarter of 2020, which will improve privacy and scalability. Bitcoin is considered the trendsetter in terms of privacy, but it has been overtaken by a host of other coins, and this has become an area of concern for a lot of market watchers. The soft fork may also help improve uptake of the Lightning Network, which has been slow to take off. If this happens, we could see additional gains right through the year.

The cryptocurrency posted a second successive profitable week last week. Having opened at $8,184.97, Bitcoin closed out the week at $8,701.70, meaning a 6% gain against the dollar, for the week.

The whole cryptocurrency market seems to have taken Bitcoin’s consolidation to heart, with the majority of coins remaining within 1% of their opening dollar price. One exception to this is Bitcoin SV. The Bitcoin fork has made significant headlines recently, as the coin’s founder Craig Wright has suggested that he has documents proving that he is anonymous Bitcoin founder, Satoshi Nakamoto. His lawyers were forced to concede, last week, that they did not have private keys that would prove the link, and BSV saw 40% losses from its recent highs.

Despite these losses, it has remained one of the best performing coins of the year and has overtaken several coins to become the fifth-largest coin by market capitalization. Today, BSV has posted 20% gains and is trading at $310.84 at the time of writing. While it still has some way to go to recover its $458.74 level, the coin’s impending hard fork could help push prices up. The Genesis hard fork will occur on block 620538 and this currently looks set for February 4th.

At 15:00 GMT, Bitcoin (BTC) has lost 0.06% and is changing hands at $8,645.10 while Ethereum (ETH) has gained 0.36% and costs $165.95. Ripple (XRP) has posted a loss of 0.79% and is trading at $0.231. Bitcoin Cash (BCH), another fork of Bitcoin, is now trading at $340.79 having gained 2.78% but it is Bitcoin SV (BSV) which is making headlines today, having posted a significant 22.54% gain to $310.84.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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