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article imageBitcoin drops below the $6,300 level

By Ken Hanly     Nov 13, 2018 in Technology
The price of Bitcoin (BTC) the largest cryptocoin by market cap, has been declining today and has dropped below the $6,300 level. However, it is still well above $6,000 at least for now.
CoinDesk analysis
Omkar Godpole provides an analysis of the price movement of BTC on CoinDesk that was last updated at 11:29 UTC on November 13. Godpole notes that BTC dropped to two-week lows early in the day and suggested the decline could be extended to key support near $6,100 according to technical charts.
Bitcoin looked to be making a bullish move 24 hours ago when it carved out a lower high of $6,270 along the support of the trendline that connects the Oct,. 11 low and Oct. 31 low. This defense of the crucial trendline support was backed up by a bullish divergence of the moving average convergence divergence MACD histogram.
However, BTC failed to move up and fell back to $6,252 in the Asian session today. This is the lowest it has been since October 31st. As Godpole's article went to press BTC was trading at $6,285 on Coinbase a drop of 0.80 percent on the day.
Chart analysis
The 4-hour chart shows that BTC has breached the rising trendline support, adding confirmation to the lower highs and lower lows pattern created since the November 7 high of $6,540. The relative strength index (RSI) of 32 is also in favor of the bears. A bigger dip could happen in the near future. However, if the prices cut through the descending trendline representing the lower highs pattern this would invalidate the bearish signal.
The 3-day chart indicates that Bitcoin is about to test support at the trendline which connects the June 24 and August 13 lows which is presently at $6,113. The bearish candlestick shows the bulls' failure to capitalize on the sideways breach of the triangle pattern seen at the end of last month.
Godpole's outlook
Based on his technical analysis Godpole's view is: The drop to two-week lows has likely opened the doors for a test of the trendline support at $6,113. A 3-day close below that level would strengthen the bear grip on BTC, allowing for a drop to June lows below $5,800. On the higher side, the weekly high of $6,540 is the price to beat for the bulls. That level put to test if prices beat the resistance at $6,383 (falling trendline hurdle on 4-hour chart)."
Present situation
For some reason CoinDesk's price charts now use Central Standard TIme(CST) rather than UTC. The open, highs, and lows listed are now for the previous 24 hour period rather than open and closing for the day. The last 24 hours as when this was posted at 18:25 CST have the price opening at $6,325 with a high of just $6,327 and a low of $6,245. The present price was $6,266.
There has been no test of the $6,113 support level but then there is no hint of the price going up either. The price is down almost 70 dollars in the last 24 hours but there is no sign of a big drop as yet. The present price of Bitcoin can be found here.
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