Bitcoin may be consolidating price above $6,600

CoinBase analysis

A recent article at Coinbase by Omkar Godpole analyses the price changes in Bitcoin over the last two days. He updated the article written on Sept. 21 at 11:47 UTC on Saturday Sept. 22. Godpole notes that during the last 24 hours the price movement took a bullish turn. As his article went to press Bitcoin(BTC) was trading at $6,700 on Bitfinex which was a gain of 4.6 percent within just 24 hours.

The recovery may be somewhat fueled by the increasing demand for other cryptocoins such as Ripple (XRP) which has risen 42 percent just in 24 hours. 18 percent of its total trading volume is coming from XRP/BTC pairs according to CoinMarkeCap. The recovery of BTC is from a low of $6,100 reached on Wednesday.

Aurora (AOA) is another alt coin that is way up, 57 percent on the day also fueled by pairs with BTC. Finally MONA, another alt coin is being helped by pairings with BTC.

Money going to many alternative cryptocoins is often via the two major currencies BTC the largest and Ethereum the second largest. Upside pressure can thus be created on Bitcoin and to some degree Ethereum. If the rally in alternative cryptocurrencies continues this could be bullish for Bitcoin.

Chart analysis

The daily chart shows that the convincing move above the September 14 high of $6,600 has led to a bullish picture, for the short term at least. The chart shows BTC moving through the double bottom neckline resistance of $6,600 earlier today and this confirms a bullish reversal. BTC could well move higher and test the upper edge of the pennant pattern $7,050 over this weekend.

Should there be a UTC close either tonight or tomorrow above $7,050 this would add confirmation to the higher price lows over the last three months and lead to the potential for a move up to July highs above $8,500.

The CoinDesk outlook

Based on his analysis, Godpole’s view is: BTC’s recovery from $6,100 seen in the last 48 hours is likely associated with a surge in interest in altcoins. The double bottom breakout has opened the doors to $7,050. A UTC close above that level would confirm a pennant breakout and boost the prospects of a sustained rally to $8,500. On the downside, acceptance below $6,600 would neutralize the immediate bullish outlook. A UTC close below the pennant support will likely put the bears back in charge.

Present situation

BTC opened the day at $6,753 and went up as high as $6,824 before falling back. The low was $6,630. The price closed a bit below the open at $6,712. It is now September 23, Sunday. The high so far has been $6,720 and the low $6, 697. However, the day is just starting. At 01:10 the price was $6,699. While there is no sign yet of any trend upward the price may be consolidating pending its next move. The present price of Bitcoin can be found here.

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