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Based on what we’ve seen, Bitcoin has remained at the $6.7k price mark for the last day or so.
One thing of note, though, is the large spike in price that occurred recently for Bitcoin on June 18th, 2018:
There are two potential (FA) reasons for why this occurred:
Potential Reason #1
- One theory posited by the publication, FXStreet, asserts that Cramer’s (seemingly) bullish statements on his CNBC show prompted retail/mainstream investors to begin flocking into cryptocurrency.
Here’s a link where an excerpt from Cramer’s show, MadMoney (or was it SquawkAlley?), where he made the proclamation that Bitcoin’s increasing prominence in recent months has put ‘pressure’ on banks, resulting in their lackluster market performance.
Personally, I have my doubts as to whether this triggered the short rally in Bitcoin’s price. Given its oversold levels, and the increasing number of shorts on the market, it appears that the conditions were ripe for a squeeze.
I don’t mean to dip too far into conspiracy theory, but this type of manipulation has been rampant over the last few weeks. It’s a pattern called ‘barting’.
See Below to Get a Better Look at it:
This pattern happens above as well as in reverse.
Potential Reason #2
2. Square obtaining a Bitcoin trading license was also very big news. As we all know, Square is owned by Jack Dorsey.
As to whether this led to a market rally for Bitcoin is, once again, something that I am not able to personally confirm, but that is a piece of news that, in effect, spurred some to believe that the recent (minor) uptick in bullish sentiment.
Back to the Chart Analysis
Bitcoin has been faithful to the trading range that it has been trading within.
Update While Writing
Just as I was writing up this report, I noticed that the price of Bitcoin took a steep dive. Which makes sense, seeing as it was right up against that upper resistance point of $6.7k-$6.8k and the volume (bars at the bottom of the chart) were beginning to wane a bit).
This candle just appeared on the 1H chart for Bitcoin.
It appears that the ‘longs’ that were placed on Bitcoin suffered as well. See below:
As you can see from the chart above, many of them had been ramping up since June 17th.
Note the caption above.
A drop down to oversold levels will probably be imminent if the RSI declines any further.
As noted above, the price is more than likely to remain trading within the fixed range that it has been in for the past few days.
If there are any further developments, they will be covered in t.me/CoinEducation .