On April 1 the price of BTC hit a low of $6,425 and then recovered to a high on May 5 of $9,990 but was unable to break through the $10,000 level. Since then bitcoin has lost half of the value it had recovered. It has now recovered somewhat and is above the $8,000 level. The minor recovery may be associated with an oversold position.
Coindesk’s technical analysis
An article today in Coindesk claims the rise is likely to be short-lived as technical analysis shows that the odds are bearish.
The close yesterday was well below the 50-day moving average (MA). This signals a continuation of the sell-off as well as does the price declining below $8,207. This was a price that acted as a strong support since May 12.
The five-day MA and the 10-day MA both are moving downwards a sign that favors bears. The relative strength index (RSI) is below 50 and falling for the day another bearish sign. The turn lower has also established a pattern of lowered highs and lows, another bearish sign.
CoinDesk’s outlook
The bears look to be in control for now: “BTC looks set to test the immediate support lined up at $7,787 (61.8 percent Fibonacci retracement). A daily close (as per UTC) below that level would be the final confirmation of bearish trend reversal and will likely be followed by a sell-off $7,000. Only a daily close (as per UTC) above the 10-day MA (currently seen at $8,555) would abort the bearish view and could yield sideways to positive action.”
Present situation
The price opened today at $8,059.60. At 19:23 UTC time the price was $8,270.37 just below its high so far of $8,273.54. Its low so far today was $7,931.43. As there are over four hours left in the day, the situation could change. There is still quite a ways to go up to reach the 10-day MA of $8,555. However, it is even further downward to the support level of $7,787. The present price can be found here.
Analysts see good price support for bitcoin at the $8,000 level
The price of bitcoin has fallen below $8,000 a number of times lately but so far has always bounced back. Analysts claim that this shows that bitcoin has built up significant support near that level.
Iqbal Gandham, the U.K. managing director of the social trading platform eToro said that there was lots of support at levels near $8,000. Charles Hayter, co-founder of the platform CryptoCompare also claimed that bitcoin had built up good support at the $8,000 level. However, another analyst for eToro took a more conservative view claiming that the strongest support for bitcoin on the downside was the $7,100 level,
Market observer Marius Rupsys was even more sceptical, saying: “There might be some support at $8000 but any price level can be broken. I would sit on sidelines to see where price goes next.”
