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article imageBitcoin price managed to breach $8,500 again Sunday

By Ken Hanly     May 21, 2018 in Technology
Bitcoin closed below key technical levels on Thursday indicating a bearish trend but the consequent sell off bottomed out at $7,925 on Friday to be followed by a rally over the weekend boosting the price over $500 dollars.
The price rose to above $8,500 above the resistance at the 50-day moving average (MA).
Coindesk analysis
Coindesk's recent technical analysis of the present situation notes that although the bearish trend of last week seems to have run out of steam over the weekend the rally was based on low volume and so may run out of steam as well.
The four-hour chart shows an inverse head and shoulders breakout. This indicate a reversal of the short-term bullish trend.
The daily chart shows a bullish reversal. The 5-day and 10-day moving averages also are no longer sloping downward and hence do not signal a bearish bias. The signs are that bitcoin could again rally to test the $9,000 level this week.
However, the bullish case is weakened by volume data. High volume tends to be bullish and low volume bearish. The trading volume of bitcoin (BTC) has been declining even as the price went up. Over the weekend, trading volume on all exchanges was only $5 billion the lowest level since April 11. The weekend rally may not be sustainable.
Coindesk's outlook
The article's conclusion is: "BTC rally lacks substance (low volumes), hence the outlook is likely neutral, despite the inverse head-and-shoulders breakout (4-hour chart) and the bullish doji reversal (daily chart). A failure to hold above $8,475 (inverse head-and-shoulders neckline) would revive the bearish view and allow a drop to Friday's low of $7,925. On the higher side, only a high volume move above the 100-day moving average, currently seen at $8,857, would open the doors to $10,000."
Present situation
The bitcoin price opened today above the $8,500 level at $8,520 . Since reaching a high of $8,566 the price has fallen to a low of $8,325. At 19:27 UTC the price was only marginally off the low at $8,343.10. While there a still more than four hours left in the day, the price could still go back to over $8,500 but right now it looks as if bitcoin will close below the $8,000 level no doubt a bearish sign according to the Coindesk analysis. The present price of bitcoin can be found here.
Bitcoin not the only loser last week
While bitcoin as the largest cryptocoin stole the limelight last week as it dropped 3.6 percent during the week it still did not do as bad as other well-known coins such as bitcoin cash (BCH) and EOS that both had double-digit losses. Others such as Zilliqa (ZIL) lost almost 20 percent the biggest loser among the top 25 currencies by capitalization. A Coindesk article has a graph showing losses and gains. Gainers, which were few, included zcash which rose 50 percent topping the list of winners as it was listed on a new exchange.
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