Present situation
At present, 20:12 UTC April 7, the price is well over $6,990 and is trending up towards the $7,000 level again. It opened today at $6,62041 and its high was 7,050.50. As I write this, the $7,000 barrier has been broken again at $7,000.50 with a gain of 5.74 percent on the day. Check on its present price here.
An article posted just a few hours ago notes that the cryptocoin market as a whole has been recovering and that the market cap of cryptocurrencies has risen from $248 billion to $257 billion with major crytpocurrencies including bitcoin and Etherium (Ether) taking part in the rise.
Bitcoin looked to be dropping below $6,500 yesterday but within 24 hours it had rebounded to $6,950 and now has surpassed that. The article suggests that if the price goes over the $7,000 mark it could continue up to $7,500 but so far it has fallen back once and now is just marginally above $7,000.
Mixed news on reception of cryptocurrencies
The entrance of institutional investors into the market through futures exchanges was expected to boost the market but there has not been a wave of investors entering the market. Volumes on the futures markets are quite disappointing.
This week, the Soros Fund announced that it is preparing to trade cryptocurrencies. This could help the market. However, several large hedge funds including Fortress have withdrawn from the area.
Bloomberg reports: “Adam Fisher, who oversees macro investing at New York-based Soros Fund Management, got internal approval to trade virtual coins in the last few months, though he has yet to make a wager, according to people familiar with the matter. A spokesman declined to comment.”
Coindesk analysis for yesterday
The Coindesk analysis of charts for April 7th suggested that the price of bitcoin risked falling to $6,000 in the next 24 hours. This has not happened as the price has risen since the low of around $6,500.
The daily chart was said to show: “The third lower high (i.e. drop from $7,509 to $6,600) indicates the corrective rally has ended. However, only an acceptance under $6,425 (April 1 low) would establish the third lower low and open the doors for a drop to $6,000 (February low).” However, the April low was never reached.
The analysis also shows that the hourly chart and linear-scaled chart also showed the possibility of a drop below the key support level. While the charts support a bearish move down the relative strength index is at just 32.80 and if it falls below 30 this could indicate that the coin is oversold and the price could go up.
The analysis makes an interesting point at the end: “Bearish invalidation scenario: On the higher side, a clear break above $6,938 (previous day’s high), would add credence to previous day’s doji candle and boost the odds of a move higher to the falling-channel resistance, currently seen around $7,580.” There has been a break twice today over $6,938 but so far the price has only risen marginally above $7,000. If the price closes above the $7,000 level that could be a sign of further gains.
