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article imageBitcoin manages to break through the $6,500 level briefly

By Ken Hanly     Aug 15, 2018 in Technology
Bitcoin rose today well over $6,500 after it had fallen below the $6,000 level yesterday and looked headed for a record new low for the year.
CoinDesk's analysis
A CoinDesk article from earlier today notes that bitcoin (BTC) appears so far to have successfully fought off a recent bearish breakdown that saw prices drop yesterday near to the yearly low. At 02:00 UTC yesterday the price of BTC hit $5,858 close to the year's low so far of $5,858 according to data from the Bitfinex exchange.
At 11:05 UTC when the article was posted BTC's price was up 5.16 percent over the last 24 hours and was trading at $6,375 according to CoinMarketCap.
Chart analysis
The daily chart shows that the relative strength index (RSI) has formed a bullish divergence. Prices have moved lower during the August 8 to 14 period but the RSI is moving higher which shows a divergence from the present bearish biased setup. This is the first positive move in the daily RSI since back on June 23 when a pullback from a bearish trend was also indicated. After that divergence bitcoin's price climbed fully forty percent. Other signs too are in favor of the bulls.
The monthly chart shows a low that is slightly higher than the yearly, a sign that the bears are becoming exhausted as they are unable to set a new low and there is declining volume beginning at the middle of May. The monthly RSI is now at its lowest since way back on October 1, 2015. This could set off a flurry of buying. However, a drop down below recent monthly lows would again expose the price to the yearly low of $5,755.
CoinDesk's outlook based upon its analysis
CoinDesk's views are: "A bullish divergence can be seen on the daily RSI – a sign of a potential reversal in the current bear market.The daily MACD shows promising signs with the histogram ticking up in favor of the bulls and threatening a bullish cross from the %K and %D lines. Declining bear volume on the monthly chart since the middle of May – keep an eye on the monthly close to see if bears fail to match or top the previous month (July volume), signaling exhaustion. Monthly RSI is at its lowest levels in two years. A drop below recent monthly lows would invalidate the bullish perspective."
Other cryptocoins have lost even more than bitcoin
Several other cryptocoins have set new yearly lows as drops have been between 2 and 15 percent. The second largest cryptocoin ether dropped by 2.95 percent and the third largest XRP or Ripple fell much more even losing $9.6 percent before the price of bitcoin did a turn around which seems to have undone some of the damage.
Bitcoin's present situation
Bitcoin opened the day at $6,192 with a low only slightly below that at $6,190. However, it then soared up to a high of $6,612 before dropping back this afternoon to close at just $6,270. It is now August 16th UTC. $6,270 has been the high but it is just a little over half an hour of trading so far. The low has been $6,223. At 00:33 the price is at $6,252 slightly below the open. The present price of bitcoin can be found here.
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