Bitcoin Price Struggles to Make it Over $6,000 Barrier

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Some evidence is arising showing that Bitcoin may be struggling to continue increasing in price. As of the middle of October, the new highs show that there could be a ceiling with pricing. The exchange rate failed to take advantage of the upward movement over $5,800 this past week.

At the time of this article, Bitcoin is taking at around $5,700, which is still up on a week-to-week basis. On a monthly basis, the coin is up a staggering 52{7b1a8a58d3ffe2d8e535e80e794d8bc0bf06a3ecc0c2050b83ca37784c6fddca}.

There are several psychological hurdles that were surpassed by the coin reaching above $5,000. This could be an indicator that the coin is starting to slow as these hurdles are not usually surpassed on a regular basis. One of the theories behind why this occurred is the event where Bitcoin forked into two different currencies, effectively making money out of nowhere.

If the price of the coin drops below the previous day’s low of $5,455, it could mean prices are going to drop.

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The chart from this Sunday, October 16th shows that the price action a “hanging man” candlestick pattern as well as a corrective pullback. This could signal that the current conditions of the coin are overbought, which would not be beneficial for the price.

In the current case, the underlying asset (which is bitcoin) while closing with marginal losses, may continue to see some losses before going up if at all.

If the coin closes beneath the past week’s closing price, it could indicate that the coin may revisit the levels it saw previously of $5,100-$5,000. Many economists are currently warning investors of the current state of overbought conditions. Hopefully the coin can avoid this, and continue to see a gradual, less volatile rise in price.

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