Some time ago, I put forward an argument about Bitcoin hitting the $6500 mark. I wrote about it in a blog titled "Bitcoin: Brace for Another Price Fall" on the 18th of September. I have brought this up because of what I wrote on that day. The graph below will illustrate this point perfectly. As is seen, the $9532 price level is supported. That support was tested four times before the eventual price fall. A support or resistance level tested three or four times almost always signals a fall or rise in price.
In this case, might we assume the same is about to happen once more? I ask you once more to observe the graph below:
Bitcoin price is in consolidation with the $6616 level tested twice already. Let us not forget that volatility is quite mild considering as you can see on with the Bollinger Bands. The price trend is also weakly-bullish as the price is beneath the Cloud and the Chikou Span entangled with the price. This entanglement means that the price levels are acting as a resistance to the overall trend. Besides, the Chikou Span is considered bearish as it is below the price of 26 days ago.
The reasons above indicate that the $6616 price will be tested again. If a test occurs for the third and fourth time, we may see a drop in price to levels such as $5500. As to what price we should expect, your guess is as good as mine.
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