Bitcoin Price Analysis June to 08 July 2018
9 July 2018 | Ricki Allardice
 


The month of June produced a significant price decline in Bitcoin. Falling from a high of $7750 to a low of $5790. This low was the third lower low formed in the bear market which started in December 2017. Thus, the trend of lower low and lower high, which are the hallmarks of a bear market, are still in force.

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However, following each low, there has been a significant rally (Feb - 66%; April - 50%) to form a new lower high. These false breakouts have presented some trading opportunities for those bold traders who are willing to take long positions in a bear market.

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It would seem that the latest low has precipitated the start of another rally. The extent of the rally is something that we are monitoring closely, as the chance that the bear market has reached a bottom does exist.

What remains to be seen is whether the current rally manages to break above the previous low formed in April ($6580). Price action is currently trading at this level and thus the next few days are crucial. Should price manage to break above this level, we would require the formation of a new high above $7700 in order to add any credibility to the recovery from the bear market. Confirmation of the end of the bear market will only be achieved when price breaks above $9800.

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Ricki

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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