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article imageBitcoin moves sideways then briefly breaches $6,500 mark

By Ken Hanly     Sep 20, 2018 in Technology
Bitcoin managed to trade sideways most of the day but then dipped and ran up over $6,500 briefly before the close. At the close today UTC time it was just below that mark.
CoinDesk analysis
An analysis by Omkar Godpole at CoinDesk posted at 13;20 UTC time today points out that Bitcoin (BTC) has made a high volume come back from five-week lows. However, a bullish reversal is still not confirmed by technical indicators.
At 18:00 UTC yesterday Bitcoin fell to a low of $6,100 on Bitfinex exchange. This was the lowest level since August 14. It signaled a downside break of the trendline connecting the June low and August 11 low--the lower edge of the pennant.
However, Bitcoin rallied just an hour later ending up with a high of $6,550. What is even more significant is that it did so on high volumes, which increased 66 percent on Bitfinex during the jump up.
The persistent inability to breach the key support level may be taken as a sign of bearish exhaustion. Movement to the upside would gather momentum only above the $6,600 level, the September 14 high. BTC was trading at $6,400 as the article went to press. This represents a 1.10 percent gain over 24 hours.
Chart analysis
The hour chart shows a big move up within the hour before 19:00 UTC and this was accompanied by a leap in trading volumes as well but so far today the follow-through has not been encouraging. However, the strong rebound from $6,100 has established that as a key near-term support.
BTC is mired in a no-man's land, as seen on the daily chart, defined by the lower end of the pennant pattern and the September 14 high of $6,600. As the article was published, the pennant support level was $6,225. A close below that level would be a sign of the revival of the sell-off from the May highs that were near $10,000.
However, a move above $6,600 would indicate a double bottom bullish reversal. This outcome looks more likely as there have been repeated rebounds at the lower end of the pennant pattern.
CoinDesk outlook
Based on his analysis Godpole's view is: "BTC's high volume reversal from $6,100 has raised the odds of a break above $6,600 (double bottom neckline). A double bottom breakout, if confirmed, would open the doors to $7,100 (target as per the measured move method).On the downside, a UTC close below $6,225 (trendline support) may yield a drop to $5,859 (August low) and $5,755 (June low)."
Present situation
Most of today Bitcoin moved sideways. It opened at $6,389 and had a low of $6,351. Towards the end of the day after a dip it made a strong recovery reaching a high of $6,507 an hour before the close. It is now Friday September 21 UTC. At 03:06 the price of Bitcoin was $6,541 after hitting a high earlier in the day of $6,556. So far there is no move above the $6,600 level but the new day is just starting. For now the trend is upward. The present price of bitcoin can be found here.
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