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article imageBitcoin bounces back over $8,000 after serious slump

By Ken Hanly     Oct 7, 2019 in Technology
After dropping several thousand dollars from September bitcoin may have bottomed out after dropping well below $8,000. It has now fought its way back above the $8,000 level.
Godbole's analysis
In an article on CoinDesk today, Omkar Godbole provides an analysis of bitcoin's (BTC) price movement. The article was last updated at 20:29 UTC. Godbole notes that BTC found strong price support at $7,700. This has helped keep hopes of a corrective rally alive.
Over last week, BTC faced selling pressure and the price fell below $8,000, contradicting a key technical indicator on Friday that showed the possibility of a corrective rally. However, the widely-tracked 100-week moving average (MA) has held its ground giving some comfort to the bulls. BTC almost tested the key technical line at $7,753 in Asian trading but had jumped back above $8,000 about 12:20 UTC.
The long-term MA has been acting a strong support level since the last week of September. The bear's repeated failure to break through this key support may result in bids from short-term traders and cause a corrective rally. Bitcoin's defense of the 100-day MA may also encourage long-term investors as the long-term MA had served as a base for beginning stage of the previous bull market.
Godbole's outlook
Godbole summarizes: "The defense of the 100-week MA coupled with the oversold conditions on the daily chart suggests scope for a recovery rally to $8,500. The case for a bounce would weaken if prices find acceptance below the support level, currently at $7,753. That could pave the way for a slide to $7,200."
Another analysis of BTC's price today is given at CoinTelegraph.
Present situation
According to CoinDesk data BTC was trading at $7,864 twenty-four hours ago. Since then its low has been $7,777 but its high has been over $8,000 at $8,304. At 18:30 Central Daylight Time it was still at $8,231 well above the $8,000 level. It is up over 4.4 percent on the day or $367. It has not yet reached the $8,500 level suggested by Godbole but that could still happen.
The BTC recovery is being closely followed by the top twenty altcoins with all rising in price. Some have much higher percentage price increases than bitcoin itself but all are heading in a similar direction. The present price of bitcoin and the top twenty altcoins can be found here.
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