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Bitcoin moves sideways for half the day and then moves up

CoinDesk’s analysis

A recent CoinDesk article posted at 11:00 UTC today and then updated at 22:00 argues that the probability of a bullish move by BTC has increased during the last 24 hours.

The price has remained far above the key support level of $6,230 the August 20 low in spite of the fact that the Security and Exchange Commission (SEC) had announced the rejection of 9 ETFs. Bitcoin had probably already priced in the bad news. There was a sharp drop in price though when the news was announced. The SEC has also decided to review the rejection of the 9 ETF’s. This may hearten the bulls and demoralize the bears. There has been an unwinding of short positions.

Shorts on Bitfinex are near record highs that were set on April 12. There may be a rally as there is a rush to cover shorts.

Chart analysis

The charts show the path of least resistance is upwards as the price remains above the crucial rising trendline.

The 4-hour chart shows that BTC is continuing to create higher lows along a rising trendline, a bullish patter. The bullish crossover between the 50-candle and 100-candle moving average (MA) also suggests further rises in bitcoin’s price. An extended period of consolidation also paves the way for a sharp move.

There could be a strong move upwards as happened back on April 12. BTC’s price has lacked a clear bias since almost two weeks and was evident even for the first half of today.

CoinDesk’s view

CoinDesk’s outlook based on its analysis is: “The odds are stacked in favor of a violent bullish move in bitcoin toward $7,000 (Psychological hurdle).The bullish view will be aborted if BTC finds acceptance below the rising trendline support, currently located at $6,432. BTC bears will likely be emboldened and could push the cryptocurrency below $6,000 (February low) if prices see a UTC close below $6,230 (Aug. 20 low).”

Present situation

As mentioned earlier, the price of BTC took a sharp upward turn this afternoon to over $6,700 and ended up closing at $6,692 a marginal drop. However, it was far above its open of $6,526. It is now two hours into August 25 UTC. The price of BTC at 02:05 UTC was $6,747 a high for the day so far, with the trend being upward. It remains to be seen how sharp the rise will be but as of now it looks very much as if the CoinDesk prediction of a possible sharp rally to the upside may very well be correct. The present price of bitcoin can be found here.

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