The CoinDesk analysis
A CoinDesk article posted at 11:43 June 29 noted that the price of bitcoin was $5,904 still below the $6,000 level and down 3.4 percent over the last 24 hours. The close below the $6,000 level the previous day and the fact that the price is still below that level is a sign that the price could continue to drop lower to $5,000.
The price had been down to $5,755 the 2018 low last Sunday but only briefly with the close being above $6,000 again. Given that the price is now again below $6,000 the long-run bearish charts show a drop lower to $5,000.
Other cryptocurrencies are going down this morning with EOS, litecoin, and cardano all showing an even worse drop than bitcoin losing 6 percent on a 24-hour basis while ethereum and XRP are also down 4 percent each.
Bitcoin is still doing better than most of the top largest cryptocoins ranking 11th. As discussed in a recent Digital Journal article investors appear to becoming risk avers and are thus taking money out of more risky cryptocoins and buying bitcoin for now. The level of BTC dominance has reached 43 percent the highest since last April 12.
While conditions seem ripe for another price decline of BTC, unwinding short positions ahead of the end of the month and the end of the quarter could propel prices above $6,000 again.
Chart analysis
The recent close below the $6,000 support level added to a bearish technical support level. Further, bitcoin is trading at a price well below the 50-day, 100-day and 200-day moving averages (MA). Other indicators are also bearish as the fact that a relatively bullish strength index and other bullish signs earlier this week failed to bear fruit in any notable corrective rally. All in all the chart signals are in favor of a drop further down.
The CoinDesk outlook
The CoinDesk predictions: Short-term outlook: Bearish, having closed below $6,000 yesterday.
Long-term outlook: Bearish, as indicated by the pennant breakdown on the weekly chart.
BTC could break below $5,755 (June 23 low) and could extend the decline towards the next major support located at $5,400 (November 12 low).
Only a high-volume falling-channel breakout would confirm a short-term bearish-to-bullish trend change.
The present situation
It is now well into June 30 UTC. The bitcoin price opened well ove $6,000 at $6,203 and climbed to a high of just over $6,500 at $6,502. The low was just $6,195 still far above the $6,000 level. At 02:45 UTC June 30 the price was at $6,404 a rise of over 3 percent on the day. While the day is still young, so far it looks as if bitcoin could be enjoying a recovery.
