Recent movements of BTC’s price
Thursday, the price of BTC rose to a high of $6,736 on Bitfinex producing signs that the recent bear market evident on Wednesday was pausing. But there was not a big volume of bargain hunters leading to a fall back below $6, 600 at 01:00 on Friday. For the last seven hours BTC has been trading in a narrow range between $6,550 and $6,620. As the CoinDesk artcle went to press at 10:00 UTC, the price was at $6,590. This is up 7.2 percent from its 18-week low of just $6,109 on Wednesday.
CoinDesk’s analysis
While it may be too early to forecast the Wednesday low was a bottom, the recovery has been promising with the price of bitcoin holding above the resistance level of $6,425 the April 1 low. A break below $6,480 could mean a resumption of the recent sell-off.
The hourly chart shows that the price has created a bear flag. A break below the $6,480 level would mean the corrective rally from the earlier low of $6,109 has ended with the sell off continuing. If this happens, the price could decline to as low as $5,750, a target arrived at by the measured height method explained in this article. There is a bearish long term set up which makes the target look feasible. Also, the relative strength index is well above oversold being below 30 another factor that could lead to more of a sell off.
The odds are that the rally will fall apart below $6,480. However, if the price finds acceptance above the immediate resistance level of $6,619 the upward trend is gathering traction.
The CoinDesk forcecast
The CoinDesk analysis concludes: “Bear flag breakdown (a move below $6,480) would imply resumption of the sell-off and could yield a drop to $5,750. A daily close (as per UTC) below $6,000 (February low) would only bolster the already bearish long-term technicals and open up downside towards the $5,000 mark. On the higher side, acceptance above $6,618 could bring a climb towards resistance located at $6,900 (June 11 high) and $7,000 (psychological mark).”
Present situation
Bitcoin’s price opened today, Friday the 15th of June, at $6,637. The high so far has been just a bit more at $6,649. The price at 21:09 UTC was just $6,485 just a bit off the low so far of $6,452. So the price has dipped below the $6,480 level indicating the sell off could continue. However, there are still almost three hours left in the day so there could still be a rise above that level showing that there is no strong acceptance below that. The price of BTC has dropped well over two percent during the day so far. The present price of bitcoin can be found here.
