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article imageBitcoin price established well above $7,000 amid bullish signs

By Ken Hanly     Sep 4, 2018 in Technology
Bitcoin's price was well established above the $7,000 level all day and close almost one hundred dollars above its open. While there was no large leap upward the trend and technical indicators show a bullish reversal.
Signs point to a bullish reversal
An article in CoinDesk by Omkar Godbole notes that the list of indicators that signal a bullish reversal increase every week.
The latest bullish reversal signal is the MACD histogram which has moved above zero, a bullish sign. This is the first time this has happened since January. The MACD histogram is explained here. The MACD oscillates above and below the zero line and is a very popular technical indicator used to determine a trend's momentum and reversal. When the histogram moves above the zero line it confirms a bearish to bullish trend. When it goes below the line, this indicates a reversal from a bear to a bull trend. The movement above zero also indicated the bearish trend is exhausted which was also indicated by BTC's long-tailed monthly candle.
The MACD bullish trend also confirms BTC's strong defense of the $6,000 support level over the last 10 weeks and fits in with the record low of net shorts in the bitcoin futures market. When the article went to press at 11:05 UTC bitcoin was trading at $7,320 on the Bitfinex exchange. On a 24-hour basis this represent a 0.8 percent gain.
Chart analysis
The weekly chart shows the MACD histogram has moved above zero and even more importantly this is accompanied by a falling channel breakthrough another bullish signal. With the weekly chart bullish, BTC could move upwards towards the July highs above $8,500 during the next few weeks.
While the long term outlook for the bulls is promising, the 4-hour chart shows the rising trendline has been breached so
the price of bitcoin. could dip below the wedge support level of $7,230 during the next few hours. BTC did drop as low as $7,236 but not below the support level. A high volume upward trend would signal a continuation of the rally that started from the August low of $5,859.
CoinDesk's future view
Based on his technical analysis Godbole predicts: " A combination of the falling channel breakout and the bullish weekly MACD indicates scope for a rally to the July highs above $8,500. For the next 24 hours, the investors need to keep an eye on the pennant pattern seen in the 4-hour chart. A bullish breakout could yield a rally to $7,500, while a downside break would shift risk in favor of a drop to $7,000."
Present situation
On September 4th bitcoin opened at $7,261 and gained almost 100 dollars at its close. It is now September 5th UTC time. BTC opened at $7,358. At 02:55 UTC it was at $7,373 somewhat above its open. It looks as if bitcoin is in an upward bullish trend, however, it is still early in September 5. The present price of bitcoin can be found here.
UPDATE: Within a half hour BTC dropped back below $7,000 again: https://www.ccn.com/7400-to-6950-bitcoin-price-drops-2-within-30-minutes-in-crypto-market-bleed/
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