Bitcoin Price Analysis: Price rebounds after a 7.5% drop

Bitcoin Price Analysis

In the past week bitcoin’s price took a steep fall to a low of $222 on June 1st. Since then, it has rebounded to it’s current price of $227. While the chart remains optimistic in the short term, it looks like the market is still looking for support after the breakdown. vlad.adrian‘s bitcoin price analysis from Tradingview suggests:

“the consolidation period has ended today, and we might see a move. I do not forecast the time it takes for trades to complete, I only do targets.  Right now, I think Bitcoin is bearish and a short position has a higher probability than a long.”

and provides the following chart:

bitcoin-price-63

 

The bulls must keep the momentum and act fast in order to sustain the uptrend in the past 4-5 days. However, no major support has still been found and the bears can drag the price lower. The problem with another major pump is the fact that on the come up miners will dump their enormous holdings of bitcoin. In China, it costs roughly 800 RMB to mine a bitcoin. 800RMB is $130 which means that if bitcoin ever went to $1300 the miners would exhibit a %100 gain.

btce-63

All miners aside we can see some action on btc-e. If the bulls keep on pushing then the price could go up past $240, however, if the bulls keep dragging the price down and keep it below $240 then it looks like the price will find a new support line. There was some good money to be made off panic dumps when bitcoin hit a low of $222 on btc-e, so next time a crash like that occurs watch out for an opportunity to nom nom cheap coinz

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Image(s): Shutterstock.com