Price hit a new low on Sunday
At 15:00 UTC on Sunday the price of Bitcoin (BTC) fell to $5,755 the lowest level it has been since back last year on November 12. However, it recovered quickly to over $6,000 again. It closed well above $6,000 at $6,150.
A CoinDesk analysis posted at 12:49 UTC today claims that because of the failure to drop further after a strong bearish setup shows that perhaps the bearish trend is exhausted. In the last seven weeks BTC has dropped from a high of $9,900 to below $6,000. Whether a relief ally is under way may be shown by whether the price closes higher at the close today. If it does so, this may set the tone for the remainder of the week. When the article went to press the price of BTC was $6,150 up a full 4.5 percent over the last 24 hours.
CoinDesk’s analysis
On Sunday BTC created a doji candle. This normally means indecision in the market. However, considering there has been a 40 percent decline from the May high it likely means that the bearish trend is nearing exhaustion.
If bitcoin closes today above $6,250 this would confirm a bullish doji reversal. The relative strength index (RSI) is also beginning to favor the bulls even though there has been a lower low in price. The combination of these two factors improve the odds of a falling channel breakout should they be confirmed.
The short-term outlook remains bearish while BTC’s price is inside the falling channel but the short duration chart does look to favor a relief rally.
The 4-hour chart suggests BTC will probably close today above the $6,250 level and this would confirm a bullish doji reversal.
CoinDesk prediction
In conclusion CoinDesk’s view is: ” A close today (as per UTC) above $6,250 will likely allow BTC to trade on a positive note for the rest of the week. In this case, the falling channel resistance (currently located at $6,800 and seen sloping downwards to $6,600 by Friday) could be put to test. A high volume falling channel breakout would open the doors to $7,700.
Bearish scenario: An unexpected close (as per UTC) below $6,000 (February low) would open up downside towards $5,090 (rising wedge breakdown target). ”
Present situation
The price of BTC opened today at $6,150 well above the $6000 level. The low so far has still been above $6,000 at $6,086. The high so far has been $6,316. At 20:19 the price was $6,257. This is just marginally above the key level of $6,250 and there are still well over three hours left in the day. However, the bullish scenario seems most likely as there is no sign of the price dropping below $6,000. The present price of BTC can be found here.
