Last week the number of short positions on the market of the bitcoin futures reached a historic low at 1266 contracts. This is stated in the report of the Commission on urgent exchange trade of the USA (CFTC).
CoinDesk analyst Omkar Godbole convinced that this indicates a depletion of the bears, which three times in the last 10 weeks were able to lower the price below the psychological support at around $6,000, but have failed to gain a foothold there.
So, Godbole believes that the technical studies that indicate strong support in the neighborhood of $6000, was confirmed, and the “bottom” is where it is.
At the same time, break of psychological resistance at $6800 the bulls will open the way to $7000.
It should be noted that the trend line is at $6600, and if the price drops below, then the bulls might lose control. In this case, more likely the rate will tend to the minimum value of 20 August at $6230. While the short term support can be $6500.
~$6550 will likely offer short-term support in case of bear break
— CoinDesk Markets (@CoinDeskMarkets) August 27, 2018
As at 13:30 UTC, August 27, the price of bitcoin is trading around $6700.
We will remind, founder and partner of Morgan Creek Digital Assets Anthony Pompliano does not exclude the fall in the price of the first cryptocurrencies to $3,000 and reaching new highs after four or five years.
Note that the co-founder of Fundstrat Global Advisors Tom Lee, meanwhile, expects a reversal of the downtrend in emerging markets, which, in his opinion, will lead to “explosive” growth of bitcoin.