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article imageBitcoin price stuck in the $8,000 to $9,000 range

By Ken Hanly     May 13, 2018 in Technology
Bitcoin joined other cryptocurrencies in ending the first week of May with descending prices. As of Sunday the price of bitcoin was well above its recent low but is still trading well below the $9,000 level.
Cryptocurrency markets end first week of May trending down
On Friday, the total capitalization for all cryptocurrencies fell below $400 billion. This was the first time for the capitalization to go this low since April 26th. Over the week, bitcoin depreciated 12 percent. Ethereum and EOS each dropped 15 percent and Ripple dropped even more at 34 percent.
Even though bitcoin's price is down, its dominance rate was above 38 percent for the first since April, indicating that some money may be rotating back into bitcoin from other coins.
Other coins in the top 25 losing even more are NEM, Stellar, and Cardano. Only bytecoin and zilliqa, lesser known coins bucked the down trend.
CoinDesk's Friday analysis
Early Friday bitcoin's (BTC) price hit a three-week low of $8,741 and it looked to suffer further losses according to chart analysis. This prediction was correct as on Saturday the price of bitcoin appears to have bottomed out near $8,250.
The price has failed to cut through the bearish 5-day moving average (MA) that was at $9,382 yesterday and fell below the $9,000 level. The price was below the 100 day MA of $8,849 and down 2.42 percent from the previous say's close of $9,018.
There has been a 10 percent decline from the recent high of $9,990 when it appeared that the price would break through the $10,000 level last weekend as reported in a recent Digital Journal article. This decline has weakened the bulls and boosted the chances of a deeper drop to $8,282 the 50-day MA. This happened on Saturday morning but near that point the price appears to have bottomed out.
The daily chart was bearish. The relative strength index(RSI) dipped below 50 indicating a short-term bullish to bearish trend change and a further drop in prices. This appears to have been correct although the decline was relatively short-term into Saturday. Both the 5-day MA and the 10-day MA are descending indicating a bearish trend.
The 4-hour chart is somewhat bearish but the RSI index shows oversold conditions indicating the price could hold for a few hours. The down trend continued however on Saturday morning.
CoinDesk's prediction on Friday
The CoinDesk analysis of the bitcoin(BTC) price is: "Bitcoin will likely break below $8,628 (38.2 percent Fibonacci retracement), signaling the end of the rally from the April 1 low of $6,425 and may fall to $8,282 (50-day MA) at the weekend.BTC could revisit $9,000 as indicated by the oversold conditions 0n the 4- and 1-hour charts. That said, upticks will likely be short-lived as indicated by generally bearish setup. Bearish invalidation scenario: A rebound from the mildly bullish 200-candle MA located at $8,628 in 4-hour chart and a close above 10-day MA of $9,390 would abort the bearish view."
The price of bitcoin has been below the $8,628 level and did fall even slightly below $8,282 but so far the price has not rebounded near the $9,000 level. It seems not likely at present that the close will be above the 10-day MA of $9,390. However there are more than seven hours left before the close.
Present situation
At present, 16:23 UTC the price of bitcoin (BTC) is trending upwards at $8,661.09. The price opened on May 13 at $8,467.66 with low so far of $8,348.31. The present price is the high so far. The present price can be found here.
Although the price is now over half way to the $9,000 mark there is still a long way to go and the price could easily drop back again. It looks as if the trading range is now stuck between eight and nine thousand down from the previous range of between nine and 10 thousand dollars.
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