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article imageBitcoin price survives weekend above $6,000 level

By Ken Hanly     Aug 13, 2018 in Technology
Bitcoin's (BTC) price is staying above $6,000 for now although so far today it has not managed to stay above $6,500 for long. Trading again seems to be contained so far in a relatively narrow range.
CoinDesk's analysis
Although bitcoin was expected to dip below the $6,000 level over the weekend, it did not do so. A recent CoinDesk article argues that this paves the way for a corrective rally over $6,480.
On Friday the price had dropped below $6,240 creating the possibility of a drop back to the June low of $5,755. Bitcoin also had closed below Thursday's low of $6,183 on Friday also showing a continuation of a sell-off from the July 25 high of $8,507.
However, no break below $6,000 happened although it came close with a six-week low of $6,000 but then rose all the way to $6,500. At 11:00 when the CoinDesk article went to press the price had dropped somewhat to $6,450.
Chart analysis
The corrective rally could be further extended on towards $6,850 if the solid resistance at $6,480 is overcome as shown on the 4-hour chart. The price of BTC is working hard to overcome the trendline hurdle at the $6,480 mark. A convincing break above this level would confirm a break from a bearish trend to a bullish trend. Paving the way to a further advance to $6,850. There was a bullish relative strength index (RSI) over this weekend as well.
However, there is currently a downward trending 50-candle moving average (MA) located at $6,580. The 100-candle MA is soon to cross the 200-candle MA from above. These are both bearish signals. Failure to take out the trendline resistance could tilt the situation in favor of the bears.
The hourly chart shows that bitcoin produced an inverse head-and-shoulders-like pattern over the weekend and cleared the neckline hurdle early today and this gives support to the bullish relative strength index divergence seen on the 4-hour chart. The bullish breakout opens the upside up to the $6,850 target.
CoinDesk's prediction
Based upon its analysis the CoinDesk article's view is: "BTC will likely find acceptance above the falling trendline hurdle of $6,480 and extend the corrective rally from the six-week low of $6,000 to $6,850 in a day or two. Bull failure to take out the falling trendline resistance in the next few hours could prove costly and yield a re-test of $6,162 (support as per the hourly chart). A violation there would expose $6,000 (February low). Acceptance below $6,000 would revive the bearish view and shift risk in favor of a drop to $5,755 (June lows)."
Present situation
BTC's price opened the day at $6,312. The low so far was $6,164. However, the high has been $6,534 taking out the key trendline hurdle of $6,480. However, it did not stay there long. At 19:30 UTC it had dropped back as far as $6,226. While the bearish scenario seems unlikely so far, there is also no convincing move toward the $6,850 but there are still well over four hours left in the day. However, as of now the BTC price could close below its open. The present price of bitcoin can be found here.
Bitcoin's rise may be helped by the fact that Turkish exchanges are doing a brisk business as many flee the Turkish lira which is plunging in value to what they apparently consider the safer bet of bitcoin. BItcoin has also raised its dominance in the cryptocurrency market to half.
UPDATE: It is now just into August 14 UTC and BTC's price has sunk below the $6,000 level. Bitcoin's dominance level continues to rise over the 50 percent level indicating investors are in a risk-off mood.
More about bitcoin, bitcoin price, petrocurrency
 
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