In our review, we would like to take a closer look at the price movement of Bitcoin from its inception to the support levels that are now keeping the BTC price from falling to its 2018 low.
In the beginning there was a word.
The moment of the creation of Bitcoin is associated with the publication on October 31, 2008 of a document under the pseudonym Satoshi Nakamoto describing the concept of cryptocurrency.
On October 5, 2009, the first exchange rate of Bitcoin to the US dollar was published. 1BTC was equal to approximately 0.00076 USD. In other words, for 1 USD you could buy 1309.03 BTC. The Bitcoin rate was published on the website of the New Liberty Standard exchange and, given the virtual absence of market demand for BTC, was calculated as the ratio of processing power multiplied by the cost of electricity to the number of mined bitcoins.
On May 22, 2010, when two pizzas were bought for ten thousand bitcoins, the Bitcoin rate was such that 10,000 BTC was equal to approximately 25.00 USD.
However, a little more time will pass, and on July 17, 2010, trading will open on the public exchange MtGox, which will begin large-scale cryptocurrency trading and Bitcoin market quotes will appear. Already on November 6, 2010, on this exchange the Bitcoin rate reaches fifty cents per 1 BTC, while its capitalization is one million US dollars.
February 9, 2011, on the same exchange, Bitcoin reaches parity with the US dollar for the first time. After $1 was given for one Bitcoin coin, on March 18, 2011, the maximum market drawdown of up to seventy cents per coin was recorded.
The beginning of 2013 is associated with the massive dissemination of information about Bitcoin, which causes increased attention to the cryptocurrency. In April 2013, the price of BTC reaches 100.00 USD, and in November 2013 it breaks the three hundred dollar mark. At the same time, around the situation with the use of Bitcoin, a number of scandalous moments occurred related to the use of cryptocurrency in the DarkNet network. On the trading platform Silk Road it was possible to buy illegal goods and services for crypto. This causes certain reputational losses for Bitcoin, but nevertheless, on November 30, its rate reaches 1150.00 USD.
2014 was not the most successful year. A hacker attack on the MtGox exchange leads to manipulation of the BTC rate. Hackers manage to set the BTC rate equal to one cent and purchase about two thousand bitcoins at this price. As a result of a hacker attack, theft and unauthorized withdrawal from the exchange of about seven hundred thousand bitcoins (which at that time amounted to approximately 350 million.. US dollars), the MtGox trading platform went bankrupt.
The Coinbase cryptocurrency exchange was founded in 2011. Viewing the Bitcoin price chart has been available since December 2014. Here's what the weekly time frame of the BTC price looks like on this exchange.
January 15, 2015, the starting point of the global uptrend is the minimum at 109.87 USD. After that, the price on the Coinbase exchange never again reached this “absolute bottom” value.
The exponential growth of the global upward trend began in the spring of 2017, when the price of BTC for the first time exceeded the level of 1300.00 USD. In June 2017, the price touched the level of 3000.00 USD, and in August this level was overcome. The price returned to the area of three thousand dollars in September 2017, since then the constant increase in the price of BTC led to the fact that on December 17, 2017, a historical maximum of the Bitcoin price was set in the area of 20,000.00 USD. The same day is the beginning of a global downtrend, as a result of which the price returned to the level of 3475.00 USD, and we are still watching the BTC/USD pair search for a global bottom. Will the price decline be limited to three thousand dollars or will the minimum at 3474.73 USD become a turning point in the history of the global decline?
If we apply the calculation of the price of Bitcoin based on supply and demand according to the Whitley model, it turns out that the price of BTC is 1242.64 USD. Which of the experts will be closest to the actual value of the global support level is still unknown, but only one thing is clear - we have yet to see and truly evaluate what “high market volatility” really is.
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