CoinDesk analysis
In an analysis last updated at 16:41 on CoinDesk, Omar Godpole claims that Bitcoin (BTC) could make a move towards $6,800 after it had a bullish breakout yesterday. BTC the number one cryptocoin had been in a narrowing price range but managed to move up to $6,423 yesterday. This confirmed an upside breakthrough of the symmetrical triangle pattern.,
With this move, the bulls appear to have won a tug-of-war with the bears over a month. But BTC is still struggling to find acceptance above the 50-day exponential moving average (EMA) which is at present $6,450. However, that level could be crossed in a day or two. The etherium bitcoin exchange rate is increasing a sign that there is a demand for alternative cryptocurrencies, a sign too perhaps that investors may be taking a risk-on attitude which means there will be buyers.
When Godpole’s analysis went to press, BTC was trading at $6,400 on Coinbase after reaching as high as $6,440 earlier in the day. This is a gain of one percent on a 24-hour basis.
Chart analysis
The daily chart shows the symmetrical triangle breakout, indicating the scope for a re-test of the recent highs that reached above $6,800. That target appears reachable since as well as the breakout there is also a bullish crossover on the moving average convergence divergence (MACD). Added to this is the fact that the relative strength index is in bullish territory just more than 50 at 53. The rising MACD histogram suggests that there could soon be further gains. The falling channel breakout also favors the bulls.
CoinDesk’s outlook
Based on his analysis Godpole suggests: “Both BTC and the ETH/BTC are looking north after the technical breakout. An increased risk appetite is seen lifting BTC above the 50-day EMA of $6,450. That would open the doors for a sustained rally to $6,810 (Oct. 15 high). The short-term bullish outlook in BTC would be invalidated if prices see a UTC close below the Oct. 31 low of $6,200.”
Present situation
It is now November 6 UTC. BTC opened yesterday at $6, 439 and closed marginally lower at $6,420 after reaching an intra-day high of $6,451. It had dropped as low as $6,389 in the course of the day. At 01:50 into November 6 the price of Bitcoin was $6,421. The price has hardly moved since the open but perhaps things will change later in the day.. There is no sign of a rally as yet but the day is just starting. The present price of BTC can be found here.
