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article imageBitcoin rises up over the $6,500 level today

By Ken Hanly     Jul 2, 2018 in Technology
After a drop well below the $6,000 level last week, the price of bitcoin (BTC) is well above the $6,000 level again and has been even above the $6,500 level.
As a recent CoinDesk article went to press at 10:00 UTC today BTC was trading at $6,320 on Bitfinex. This is up fully 13 percent from the 7-month low of $5,755 set on June 24th.
Bitcoin did not drop to new lows over the weekend
On Thursday BTC closed below $6,000 and was expected to drop to fresh lows below $5,755 over the weekend. However, as a recent Digital Journal article points out, it bottomed out on Friday at $5,780 and then rose above $6,000 again. On Saturday morning on Bitfinex the price contradicted the bearish technical setup by rising to $6,545 on Bitfinex. This was its highest level since June 22. There may be a dearth of sellers as they have pushed BTC lower by a full 70 percent so far this year.
The CoinDesk analysis
The fact that the price has repeatedly rebounded after being below $6,000 shows that the level is a significant resistance mark and near-term support.
On Friday bitcoin produced a bullish outside-day candle and closed well above its Friday high of $6,302 on Saturday. This confirmed an bullish outside-day reversal pattern. However, the follow through has stalled at the falling channel resistance during the last 48 hours. Only after BTC crossed the falling channel barrier in a convincing manner would CoinDesk judge that there was at least a short-term bearish-to-bullish trend. The falling channel resistance is $6,450.
The probability of breaking through this resistance looks high and would produce a bull flag indicating that the recovery upwards could continue.
A break above the flag resistance of $6,416 would be a sign that the rally from the recent lows could continue with a target of $7,065.
The CoinDesk outlook based on their analysis
The Coindesk view is: "The sell-off from the May 21 high of $9,990 seems to have ended. However, only a bullish falling channel breakout would confirm a short-term bearish-to-bullish trend change. Should BTC cross the falling channel resistance of $6,450, then resistance lined up at $6,848 (June 19 high) and $7,000 (psychological hurdle) will likely come into play. On the downside, a break below $6,000 would kill the odds of a short-term bullish reversal. A daily close below $5,755 would revive the bearish outlook and expose support at $5,400 (Nov. 12 low)."
The present situation
BTC started today at $6,347 and reached a high of $6,665 with a low of $6,278. It is now July 3 UTC. At 01:27 UTC the price of BTC was $6,611 just marginally off its open of $6,613. Over June 2 the price of BTC gained over $250 dollars. It remains to be seen if this bullish move continues through July 3 and reaches the $7,000 level as the CoinDesk analysis sees as possible. The present price of BTC can be found here.
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