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article imageBitcoin poised to test $7,000 level this week?

By Ken Hanly     Jul 4, 2018 in Technology
A CoinDesk article posted at 11:29 UTC today claims that bitcoin's (BTC) price is flashing green, even after a somewhat down day yesterday.
CoinDesk predicts that the BTC price could test the $7,000 level this week. At the time the most recent article went to press, BTC was trading at $6,575 a jump of 3.4 percent over the last 24 hours.
As an earlier CoinDesk analysis noted the price of BTC on Bitfinex had reached $6,681 on Monday the highest it has been since June 22. The analysis also noted that in spite of yesterday's drop the outlook was for a test of the $7,000 mark.
CoinDesk analysis
A short-term change from bearish-to-bullish is indicated by the BTC price break above the $6,450 level which will encourage investors to search for bargains and put upward pressure on the price of bitcoin. Not only could bitcoin rise to the $7,000 level, if it breaks through on a sharp rise in trading volume it could go up even further.
However, according to CoinMarketCap, the volume has been $4.61 million and this is down eight percent from the volume on Monday in spite of the change in the trend from bearish to bullish.
On Monday BTC closed at $6,618 confirming a bullish channel breakout. The 5-day and 10-day moving average (MA) are now sloping upward a bullish sign. As well, the relative strength index (RSI) is now neutral at 50. Chalkin money flow (CMF) oscillator, that is used to measure buying and selling pressure has turned positive. This is the first time this has happened since May 20 and is at its highest level since May 10. This shows money is flowing into bitcoin and reinforces other bullish signs.
On Monday there was a bull flag breakout indicating that the rally from the Friday low of $5,800 was continuing and indicated that there could be a break to above $7,000. However, the movement up may take a while as short-duration charts indicate that BTC is overbought. The hourly chart now shows the RSI in overbought territory with the 4-hour RSI being well above 70, which is overbought territory.
CoinDesk's outlook
Based on its analysis CoinDesk predicts: "The bullish falling channel breakout confirmed a short-term bearish-to-bullish trend change. BTC looks set to test $7,000 in the next few days. As for today, we could be in for a minor pullback or a bout of consolidation (sideways trading) as the cryptocurrency is overbought as per the RSI on the hourly chart and 4-hour chart. Only a daily close (as per UTC) below $6,275 (previous day's low) would abort the short-term bullish view. "
The present situation
BTC opened today at $6,504 and has so far reached a high of $6,783 and a low of $6, 420. At 16:05 UTC the price was $6,687 up about 2.8 percent or $182 on the day. but considerably below its high. So far the minor pullback predicted has not happened.
There is no sign of a drop below $6,275 as yet. However, there are still about 8 hours left in trading for the day. The present price of bitcoin can be found here.
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