CoinDesk analysis
A recent CoinDesk article claims that bitcoin’s (BTC) price is showing some signs of life, but that only a rise above the resistance level of $6,675 would confirm that there is a bullish reversal according to technical charts.
When the article went to press at 11:10 UTC bitcoin was trading at $6,470 on Bitfinex. This up fully 10 percent from the 6.5-week low it reached on August 14. There was a bearish break below $6,000 but it did not last yesterday but by the close the price was back above $5,100 showing the bearish move had run out of steam.
Of importance is the fact that BTC crossed Tuesday’s high of $6,259 reaching a high of $6,649 yesterday. This may indicate sellers are running dry and bargain hunters are moving in.
It would seem that there is a bullish trend reversal going on. This would be confirmed if prices break through the inverse head-and-shoulders neckline resistance which is at $6,675.
Chart analysis
On the hourly chart the price is creating the right shoulder of an inverse head-and-shoulders reversal pattern a bullish indication. A move above $6,675 would confirm the sell-off from the July high of $8,507 was at an end and open the way to a target of $7,490.
Both the daily and the 4-hour charts show that BTC could attempt a break through of $6,675 in the next 24 hours.
The 4-hour chart shows that the price has gone up over the descending trendline indicating the sell-off is at an end. The relative strength index (RSI) is also bullish being above 50.00.
Yesterday’s daily chart showed that a bullish inverted hammer was created and this added confirmation to the long-tailed candle Tuesday showing bear exhaustion. This confirmed that the price likely bottomed out at $5,859.
CoinDesk’s outlook
Based on its analysis the article argues: “BTC bulls are slowly gaining ground and could attack the inverse head-and-shoulders neckline resistance of $6,675 in the next 24 hours. A break above $6,675, if accompanied by a pick-up in volumes, would confirm a bearish-to-bullish trend change and allow a rally to $7,490. On the way higher, BTC could encounter resistance at $6,924 (50-day moving average), $6,982 (rising trendline hurdle as seen on the daily chart), and $7,162 (100-day moving average). Acceptance below $6,180 (previous day’s low) would pour cold water over optimism generated by the inverted hammer candle and would shift risk in favor of a drop below $6,000. ”
Present situation
It is now August 17th UTC. The price of bitcoin opened at $6,314 and has risen to a high so far of $6, 438 over a hundred dollars above its open. Its low so far has been $6,293. At the time this article is being published it is 03:03 UTC August 17 and bitcoin is trading at $6,419 still over a hundred dollars above its open. The price may be headed fro the $6,675 level as trading has gone on only a little over three hours but it remains to be seen how bullish the new day will be. The present price of bitcoin can be found here.
There is no indication the price is going to zero as predicted on the appended video!
