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article imageBitcoin trading in a narrow range above $7,600

By Ken Hanly     Jun 6, 2018 in Technology
Today June 6, bitcoin (BTC) traded in a narrow range mostly above the $7,600 level. However, the price managed to close slightly up from its open. It is now just an hour into June 7th UTC.
CoinDesk analysis
A CoinDesk article posted at 11:10 UTC this morning claims that bitcoin's price is still operating in bearish territory. According to technical charts only a move above $7,780 would bring the bulls back into play. As the article was posted, the BTC price on Bitfinex was $7,591. Bitcoin was on the defensive Tuesday and looked as if it would test the recent low of $7,040. However, this did not happen as the decline stopped at $7,372 and the price began to increase rising above the $7,600 level on Asian markets this morning,
The bear movement appears to have exhausted itself. The article finds no clear reason why it should do so but it fits a historical pattern in that on the sixth of each month the BTC price appears to change direction in favor of the weaker side. If this pattern is followed the BTC price could rise today.
A fear on the part of the bears that they could get trapped on the wrong side of market movement might also have kept them on the sidelines in spite of the fact that the price is still in bearish territory as shown on the four-hour chart. The BTC price appears to be treading water in bearish territory and is trading within a narrow range.
The 4-hour chart rising-wedge breakdown remains in play as long as the price trades below $7,780 the June 3 high. This means there could still be a downside break and this could accelerate if the support level of $7,372 is breached.
The 50-candle moving average (MA) is now rising and this favors the bulls. The 100-candle moving average is now flatlined and has also shed its bearish bias so this means the odds of breaking through the $7,372 support level are low,
The CoinDesk outlook
Based on its analysis CoinDesk predicts: "A high volume break above $7,780 would add credence to the quirky "6th of the month" pattern and signal a bullish trend reversal. In this case, prices will likely rise to the 10-week MA, currently located at $8,310 .A break below $7,372 would put the focus back on the rising-wedge breakdown and allow a drop to $7,040.
The present situation
BTC opened the day at $7,616,54 and reached a high during the day of $7,693.16. The low was $7,494.54. The low did not even reach $7,372 nor did the high even reach $7,780. However the closing price of $7,655.98 was about 40 dollars above the open.
Just one hour in to June 7 UTC the BTC price was $7,717,36 so the price has breached the $7,700 level early in the day. It remains to be seen if this trend can continue. The present price of BTC can be found here.
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