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article imageBitcoin trading in narrow range above $6,600

By Ken Hanly     Jun 19, 2018 in Technology
While a CoinDesk analysis of bitcoin's (BTC) price movements yesterday claimed that it was facing a drop below $6,000 nothing of the sort has happened. Bitcoin opened today June 19th at more than $6,700. Perhaps the further drop will be later this week.
CoinDesk's analysis
CoinDesk notes that both short-term and long-term charts of the BTC price contain bearish signs showing that there will likely be a further drop after a short-term recovery. The article does point out that the price found acceptance above the key resistance level of $6,425 the April 1st low, and this had raised the prospect of a corrective rally towards the $7,000 level. As well, even though a fall to $6,000 after a bear flag breakdown last Friday seemed likely it was cut short at the $6,300 level showing the bearish trend was exhausted. However, over the weekend there were few buyers and the recovery stalled at above $6,500.
The high of $6,573 on Sunday was followed by a drop to $6,370 early on Monday. Added to this is that both the short and long term charts show bearish trends. The analysis was made on June 19th at 10:00 UTC when the price of BTC was $6,430 on Bitfinex. This was down 1.3 percent within the last 24 hours.
The four-hour chart showed a drop to $6,370 earlier confirming a downside break of the pennant. This is sign that the bearish continuation pattern of the sell-off from the recent high of $7,638 was resuming. The price of BTC could slide to $5,820, the target according to the measured height method. The method is explained here.
The 50-candle, 100-candle and 200-candle moving averages (MAs) are also pointed toward bearish territory. The relative strength index(RSI) is also struggling to move up into bullish territory about 50.
The daily chart shows the price trapped within a falling channel with the RSI staying in bearish territory below 50 and the10-day MA is also bearish as it is falling.
The weekly chart is also bearish with the 5-week and 10-week MAs showing a bearish setup. The 10-week MA is about to cross the 50-week MA a bearish sign and the first time this has happened since way back in September of 2015.
CoinDesk's outlook
CoinDesk's predictions: BTC will likely test $6,000 this week and could extend losses further towards $5,820. On the higher side, a convincing break above $6,618 (resistance seen in 4-hour chart) would open up upside towards the 5-week MA, currently located at $6,943. Only a weekly close above $7,959 (50-week MA) would abort the long-term bearish view.
A competing analysis is to be found on the appended video
Present situation
The BTC price opened today at $6,709 with a high so far of $6,824 and a low of $6,674. At 21:39 UTC the price was $6,718 just marginally above its open.
There is no sign yet of any resumption of a fall in price. On the other hand, there is a breakthrough of the $6,618 level but the high so far today has been below $6,943 the 5-week moving average. However there are still over two hours left in the day. The present price of bitcoin can be found here.
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