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Is Bitcoin Price Breakout Imminent?

September 29, 2018 at 15:12 by Arathur Stephen

Bitcoin price dropped nearly two percent today, from yesterday’s surge to over $6,700, giving back a portion of its recent gains in what appears to be a correction.

Although Bitcoin price is over 3% higher than at the start of the quarter, there is a possibility of the crypto market posting sizeable declines in the third quarter, unless there is a major rally in crypto prices this weekend.

However, is there a reason to be optimistic? So far, various analysts have expressed optimism, believing that Bitcoin could enter a massive bull run during the last quarter of 2018.

One of these is Naeem Aslam, a chief market analyst at Think Markets UK. While speaking to MarketWatch, the prominent financial analyst stated that the current price movement is similar to that of September 2017, thus indicating that a rally is on the horizon.

In his statement, Aslam was quoted as saying;

 September is coming to an end and a very interesting quarter is about to start. Does it remind you of anything? Oh yes, it reminds me of last year’s bull rally.

Back in September last year, Bitcoin traded around $3,000 and $4,000 before going on a parabolic move in October and eventually, the acceleration reached nearly $20,000 in late December.

Having similar expectations, Aslam further commented;

It appears to me that a similar momentum could be building up again. This must be music to those who are suffering from heavy losses in the crypto market.

Is Aslam’s prediction correct?  Only time will tell.

In the meantime, what is Bitcoin’s current state of play compared to the past 24 hours? Bitcoin price recently plunged to $6,500 levels. As of 1:40 GMT, the price was down by 1.2 % to $6,575, reducing its market capitalization to $113.7 billion.

However, the next market movement will determine which direction the digital coin moves in for the rest of 2018.

The Relative Strength Index (RSI) recovered recently from an oversold position, flashing a buy signal. This came after the price dropped earlier today and signals a short-term recovery.

The Klinger Volume Oscillator is pointing upwards, with the signal line about to cross over the oscillator if this movement continues. This indicates a bullish sign.

Bitcoin bulls will be in charge if this buying pressure continues. However, trades are subject to low volume issues during weekends, but a strong price rally may as well push the price over the $6,500 levels. This would represent a trend reversal and also a break out of the $6,000-$6,500 psychological zones.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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