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article imageBitcoin drops below $9,000 but crawls back over for now

By Ken Hanly     Apr 26, 2018 in Technology
The most recent CoinDesk analysis of bitcoin's price movements released at 10:30 UTC this morning April 26 shows that it looks to have found acceptance below $9,000 and the article argues that it risked a further pullback according to technical charts.
The article notes that the price hit a one-week low of $8,652 on Bitfinex early in the day and at press time it was trading at $8,700.
The ten percent decline from a weekly high of $9,767 on Wednesday neutralized the immediate bullish outlook the article argues. The failure to stay above the key technical levels of the descending 100-day moving average (MA) of $9,126 and $9,280 is a discouraging sign for bulls.
However, only a break below $8,429 would be a sign of a short term bearish reversal and open the doors for an even deeper sell off.
The article argues that the Wednesday chart showed a sign of a sudden bearish reversal. To confirm this there needs to be negative price action the next day which happened earlier today. The confirmation would need to be a close below the $8,459 level. However, this did not happen with the close being well above $9,000.
The article concludes with bull and bearish outlook conditions: "Confirmation of a bearish outside-day reversal would open up downside towards $7,823. A daily close (as per UTC) below that level would signal a violation of higher lows and higher highs pattern (bullish setup) and would also mean the long-term descending trendline breakout has failed. In such a case, BTC could revisit the April 1 low of $6,425. Bullish scenario. BTC will likely revisit $9,280 if the bulls manage to defend the 4-hour 50-day MA and 10-day MA in the next few hours. Acceptance above $9,280 would expose the 200-day moving average, currently located at $9,853."
The bearish scenario did not come to pass.
The present price of bitcoin
At just over an hour into April 27th 01:20 UTC, the price of bitcoin was $9,287.63 on CoinDesk and trending up. The price had opened well over the $9,000 mark and has already passed through the $9,280 resistance level. It remains to be seen if the price can move above the 200-day moving average (MA) of $9,853. So far advances over the $9,000 mark have eventually fallen back.
Mining of bitcoin coins reaches milestone
The 17th million bitcoin is likely to be mined within the next day a new milestone for miners. Under existing rules, there will be only 21 million bitcoins that can be created. If there is a substantial increase in demand the price could increase.
Volume of bitcoin futures trading increased Wednesday
Both markets for bitcoin futures contracts saw a major boost in volume on Wednesday. Chicago Board of Exchange (CBOE) saw its largest ever volume for future contract since it began trading in December. 18,210 contracts for May futures were traded, along with 703 for the June contract and 87 for the July contract.
The Chicago Merchant Exchange(CME) also saw a large increase in trading volume Wednesday. Volume doubled from the previous day reaching past 11,000 contracts. Most of the spike was in April 2018 contracts according to the CME website.
It remains to be seen if this is a sign that investors are becoming more interested in the futures or if this was just an anomaly.
The appended video discusses the views of a former PayPal CEO that bitcoin is a scam!
More about bitcoin, bitcoin price, bitcoin futures
 
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