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article imageBitcoin faces a down weekend well below $8,000 level

By Ken Hanly     May 27, 2018 in Technology
Not too long ago, bitcoin was approaching the $10,000 level but it never reached it. After trading in the $9,000 to $10,000 range for some time it then fell below $9,000 and had been trading between the $8,000 to $9,000 range up to now.
Now the price of bitcoin (BTC) has fallen far below the $8,000 level and could drop even further.
Outlook is bearish
A CoinDesk article from yesterday morning claims: "Bitcoin risks closing below the 50-week moving average (MA) – an important long-term support not breached for over two-and-a-half years."With the bears already on the offensive following the recent sell-off, prices are likely to suffer if bitcoin closes on Sunday below the key support, currently seen at $7,611. More worryingly for the bulls, since the cryptocurrency has not traded below the 50-week MA since October 2015, acceptance below that level would only add credence to the argument that the long-term bull run has ended. " " The price has dropped below the 50 week moving average a few days ago.
Bitcoin price could fall below $7,000
An article at CCN suggests that the price of bitcoin will likely fall to the higher end of the $6,000 region over the short term. The article notes that the price had dropped by 2.5 over the last 24 hours even dipping below $7,300 at one point.
The article notes that this year the bitcoin price has been subject to three major corrections on February 7, April 10, and finally May 25: " The initial correction that occurred on February 7 led the bitcoin price to drop from $19,900 to $6,100, by more than 69 percent. The second correction on April 10 prompted BTC to fall from $12,000 to $6,400, by 46 percent. The third and latest correction on May 25 led BTC to decline from $10,000 to $7,200, by 28 percent."
In each correction there have been smaller sell-offs and a narrower correction period. The first correction lasted nearly two months but the second and this last one bottomed out in about a month.
The article claims it is highly likely that the bitcoin price will rebound in the short term once it hits the $6,800 mark, which could result in a stronger rally in the mid to long term. At the $6,800 level, an accumulation period can be expected, during which bitcoin slowly increase its price and gains momentum. This could also help other cryptocurrencies recover.
Analyst Willy Woo sees the bitcoin price sliding down to the $5,000 region. The CCN article claims this is unlikely unless the price drops below $6,500 and fails to be supported at the $6,800 level. A fall below $6,000 is unlikely.
The present situation
At about 19:00 UTC the price of bitcoin (BTC) was about $7,282. The open was $7,334.16 and the high $7387.13. The low was $7,226.65. The range is quite narrow so far and shows no sign of dropping below the $7,000 level. On the day so far the price is down under fifty dollars. The present price can be found here.
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