Bitcoin Price Analysis 13 June 2018

13 June 2018 | Ricki Allardice

1 Day Chart

Bitcoin price continued to fall throughout yesterday, before finding support at $6650. This is a major level of support, indicative of the swing lows formed previously. Should this level hold then we have seen the formation of a triple bottom, which suggests that the bears are unable to push price lower.

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As you can see on the chart below, a retest of $6550 would be the third time that this level has offered support.  Furthermore, the long term trendline from early 2017 has reached a confluence with price action. Will this trend be maintained?

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4-hour chart

On the short-term chart, you can see how price action recovered slightly yesterday before plunging down to the support level at $6550, where it is currently trading. The chart is bearish at the moment, but a bounce may be on the cards based off the support level. However, should support fail, then significant short opportunities will present themselves.

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The concerns that I have had for the past few months have now been met, should we not see a reversal occur at or above $6550, then we could be in for a deep bear market, possibly testing the $4900 level. As it stands currently, price is trading below the 50-week moving average. The next major bearish milestone would be the crossover of the EMA8 and EMA20 with the MA50 on the weekly chart.

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Ricki Allardice

Ricki specializes in the field of wealth management with a focus on holistic financial planning. He has a keen interest in the investment fields of property, technology, precious metals and cryptocurrencies. Ricki also holds a Masters degree in Science from the University of Stellenbosch.

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