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Price of bitcoin reached lows of near $6100 yesterday but after finding some support, we are experiencing a rise in price today. It was only two weeks ago when the price was trading near $8500 and BTC has experienced an almost 30% decline from these levels. The price drop last week was unrelenting with day-after-day of consecutive losses. With such strong bearish momentum, this leads us to the question of whether today’s rise is only temporary before a continuation of the downward movement.

Bitcoin Daily Chart

A few signals point to the fact that we could be nearing the bottom for Bitcoins price. All-time lows of 2018 are now approaching. The current all-time low is around $5800, just 10% lower than where we are currently trading. Significant buying pressure is to be expected as we approach this and the $6000 mark. Bitcoin futures are no longer trading at a premium either which means some selling pressure will now be out of the market. When futures trade at a premium, there is additional selling pressure in the form of miners selling futures contracts to lock in profits.

Spot Price, September, & December Futures Chart
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A noteworthy rise has occurred over the last two hours in the price of Bitcoin. Significant support came in to play at $6250 but price managed to rise back above $6400 on high trading volume. Price seems to be experiencing some resistance at the 50EMA. Price may trade in a range here for a while as traders place positions for the next big directional move. If the price starts to trade into a range, the longer it does so, the greater the likelihood of a bull flag. In the case of another break to the upside, resistance is expected at around the $6750-6850 point and at the 100EMA.

Bitcoin Hourly Chart

Key Takeaways:

  • 30% decline since two weeks ago
  • Bottom for the price was near $6100
  • Support came into play around $6250
  • Futures no longer trading at a premium resulting in some selling pressure coming out of the market
  • Price trading in a range now may result in a bull flag pattern
  • In the case of a break to the upside, resistance expected at $6750-6850 and the 100EMA
DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.

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