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article imageBitcoin price rising but still below $8,000 level for now

By Ken Hanly     May 31, 2018 in Technology
A Coindesk analysis today notes that the recent sell-off ran out of steam yesterday at $7, 270. As the article went to press at 10:30 UTC on May31 bitcoin (BTC)) was trading at $7,535 on Bitfinex and was up 0.6 percent over the last 24 hours.
Recent bitcoin price movements
Bitcoin seemed to be ready for a corrective rally on Wednesday after there was a bullish outside-day candle on Tuesday. The appended You Tube video explains an outside day.
Investopedia explains the technical concept of a candle.
However, around the 50-candle moving average (MA) of $7,550 the price had trouble moving higher. There was a sell-off that ran out of steam at $7,270. There was then a rally that resulted in the price moving above the 50-candle MA today at $7,441.
When the CoinDesk article went to press at 10:30 UTC on May 31, the price was at $7,535 a gain of 0.6 percent over 24 hours.
The four-hour chart
The recovery from $7,250 up to $7,570 created a higher low pattern that is a bullish sign that added strength to the Tuesday outside-day candle along with the bullish price-relative strength index (RSI) divergence. The price could test supply at about the $7,870 level.
The price could also reach the important 50-week MA now located at $7,711. If the close this Sunday is above that level it would indicate that the bearish trend is invalidated.
Weekly chart
The chart shows that the last weekly candle had closed below the 50-week MA for the first time since October 2015, in theory indicating the end of a long-term bull run. Although there are bullish signals, the article suggests that one should be cautious as 50, 100 and 200 day MAs are biased towards the bears as well as the 10-day MA on the 4-hour chart.
Coindesk's outlook
For the near future, the article predicts: "Bitcoin will likely soon rise to $7,870 (descending trendline hurdle) in the next 24 hours. A high-volume break above that level would allow a re-test of the 50-day moving average, currently located at $8,522. Bearish scenario: The moving averages are maintaining a bearish bias, so a drop to $6,900 could be on the cards if the bulls fail to capitalize on the break above $7,500 and the price drops below $7,270 in the next 24 hours. Bitcoin (BTC) is working its way through the key supply zone above $7,500 and could test resistance at $7,870 in the next 24 hours, the technical charts indicate."
The present situation
As of 02:30 on June 1 UTC the price of bitcoin was $7,505.76 just slightly below the high so far of $7,520.38. The day opened with a price of $7,487.19. The low has been $7,483.20. The present price can be found here.
Bitcoin's price has to rise considerably to reach the key resistance level of $7,870 but at least it is trending in the right direction for now and has breached the $7,500 level. Most of the day remains.
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