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article imageBitcoin price struggles to recover then again dips below $8,000

By Ken Hanly     Mar 17, 2018 in Technology
Yesterday it appeared as if the bitcoin price was in recovery mode but by 13:40 UTC today March 17th it had dropped down below $8,000 again.
A recent Coindesk article notes that bitcoin (BTC) could be seeing a corrective rally after earlier losses. However, it claims that technical charts indicate that it is probably too early to call a bottom.
Yesterday bitcoin price moved roughly sideways with a few bumps
For 24 hours the price range was relatively narrow between$7,900 and $8,400. CoinMarketCap calculated the average price at $8,169 which was up 0.15 percent during the last 24 hours. The seeming consolidation may have brought some relief to bulls and even suggests that a temporary low of $7,676 may have been reached. Shorter duration technical charts even suggest the possibility of a potential relief rally.
However the price movement today so far shows a decline back down below $8,000 though it has not broken through the previous temporary low. After opening above $8,000 at $8,269 by 16:00 UTC the price was just over $7,900 and as of writing this the price is not far off that at $7,893. The price is down over 4.5 percent on the day.
The coindesk article claims: "Bitcoin has created a bull flag pattern on the hourly chart - a continuation pattern - meaning an upside break to above $8,370 would signal a continuation of the rally from $7,665 (Wednesday's low) and open the doors for $9,170 (target as per the measured height method)."
The relative strength index (RSI) also indicated a bullish pattern. The article does note however that the 50 hour hour moving average (MA), the 100 hours MA and the 200 hour MA all slope downward a bearish signal. The article says this indicates the rally could be short lived. It already seems dead given the trend so far today. Resistance to any rally is expected around $8,710.
Prediction for the future
The article sets out the bearish and bullish conditions: "In the larger scheme of things, only a close above $11,700 would invalidate the bearish set up on the weekly chart and signal a bearish-to-bullish trend change. Bearish scenario: Repeated failure to hold above $8,342 (last Friday's doji candle low) could yield a sell-off to $7,000. Note that bitcoin has already failed twice in the last 24 hours to keep gains above $8,34.."
Possible reasons behind bitcoin's price decline
One reason behind the declining bitcoin price is the presence of the Tokyo whale in the market. The whale is charged with selling off a huge accumulation of bitcoin remaining from the Mt.Gox exchange that went bankrupt. He has been selling into the market for some time. However, the whale wants to get the best price he can and is likely to try and avoid driving the price down as much as he can.
A second reason is the recent ban on cryptocurrency ads by Google. A third reason is that many US investors may be selling off their coins to avoid possible capital gains tax on the coins.
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