Bitcoin has rallied about 10 percent this week to be back above $9,000 following its third halving having been completed on Monday.
A bitcoin halving is an event where the reward for mining new blocks is halved, meaning miners receive 50 percent fewer bitcoins for verifying transactions. Bitcoin halving’s are important events for traders because they reduce the number of new bitcoins being generated by the network.
However, despite being back above $9,000 after its historic and highly-hyped halving event, it hasn’t been able to sustain a rally above $10,000, a resistance level that dates back to October.
Technical analysis of the chart shows that the MACD — or the moving average convergence divergence gauge – is indicating the smallest positive divergence since Bitcoin’s uptrend began, suggesting bulls would need strong support to go above $10,000.
On the positive side some investors are seeing Bitcoin as an inflation hedge, which could propel it higher. Famed investor Paul Tudor Jones, said recently he had been buying Bitcoin amid massive central bank money-printing.