Recent CoinDesk analysis
A CoinDesk article by Omkar Godbole provides a recent analysis of the price movement of Bitcoin. Godbole claims that Bitcoin (BTC) might experience a minor corrective rally if the bulls continue to manage to defend a key support level and this leads to a break above the resistance at $6,400, as indicated by technical charts.
Early in the session yesterday, Bitcoin had a downside break of its symmetrical triangle formation. This signaled a return of the sell-off from recent highs above $7,400. Also, the bearish pattern was heightened by the negative setup represented by the rising wedge breakdown as well as the pennant breakdown evident on the line chart.
BTC was thought to be likely to test the $6,000 level the February low before the close UTC yesterday. Instead, it bounced back from $6,170 and closed relatively unchanged. As the article went to press today at 12:03 Bitcoin was trading at $6,250 on Bitfinex, and the trendline is slightly higher.
Chart analysis
The daily chart shows that the lower end of the pennant pattern–the trendline sloping up from the June low–is proving to be hard to breach. This can be a sign of bearish exhaustion since the crucial support still is holding after a 16 percent drop. This view has merit after the Bitcoin price produced a “spinning bottom” candle yesterday a sign of indecision in the market.
A UTC close today above $6,400 the previous day’s high would open doors to a stronger corrective rally towards the 10-week moving average (MA) of $6,830. On the other hand, acceptance below the pennant support would give more strength to the bear case.
The future outlook
Based on his analysis Godbole’s view is: “BTC’s repeated defense of the key price support has neutralized the immediate bearish outlook.,A convincing break above yesterday’s high of $6,400 would confirm a spinning bottom bullish reversal and could yield a test of supply around the resistance at $6,800 (multiple daily highs).A UTC close below $6,180 (pennant support) would add credence to the rising wedge breakdown witnessed earlier this month and would open up downside towards the June low of $5,755.”
Present situation
Bitcoin began the day at $6,328 that was also the day’s low. It rose during the day to $6,523 well above yesterday’s $6,400 mark. It closed above that mark at $6,486 a bullish sign as Godbole pointed out. It is now September 14 UTC. At 02:53 UTC the price of Bitcoin was $6,545 and the trend is up and on its way to the resistance level of $6,800. The present price of Bitcoin can be found here.
