According to the analyst CoinDesk Omkara of Godbole, despite the extremely negative news, bitcoin price still remains in uptrend and looking to around $7000.
Immediately after the news about the hacking of a second in trading volume in South Korea Bithumb crypto currency exchange, bitcoin price dropped by about $ 200 (with $6740 to $6560).
However, the “digital gold” currently holds the bar at $6600 and is not going to radically change direction. The weighted average price of bitcoin over the past day has decreased only by 1.5%.
The four-hour chart
Currently, the price of BTC is slightly above the moving average (MA) with a period of 50, which passes through the level of $6545.
On the chart also traced the figure of a bullish reversal “Rounded bottom” (Rounding bottom). This, in particular, suggests that over the past 10 days the mood is gradually changed from bearish to bullish. The relative strength index (RSI) is also kept above $ 50.00, while in “bullish territory”.
Thus, short term price movement the first cryptocurrency remain moderately optimistic. However, significantly weaken the upward movement can breakthrough highlighted with a yellow dotted line local trend line.
Daily chart
Below, more “older” timeframe, you can see the upward crossing of moving averages periods of 5 and 10:
It also confirms the change in sentiment from bearish to bullish.
Summary
- bitcoin is moving slowly to $7024, which is the 23.6% of Fibonacci in the context of the recent fall from $9990 to $6108;
- closing daily candle above the aforementioned level would open the way for bitcoin to the range of $7500 -7600;
- high probability that the triumph the bulls will be short-lived because long-term data technical analysis still points to the dominance of the sellers;
- a break below $6510 (yellow trend line on the four-hour chart) can break short-term scenario with the dominance of buyers;
- the close of day candles below $6000, likely to enliven the bear market will become a catalyst for further price reduction in the neighborhood of $5000.
ForkLog previously reported that, according to analysts Fundstrat, even the bitcoin drop to $3200 will not break the long-term uptrend.
Source
