Last week, the number of short positions in the bitcoin futures market reached a historic low at the level of 1266 contracts, according to CFTC report.
CoinDesk analyst Omkar Godbole is convinced that this indicates the depletion of bears who three times over the past 10 weeks managed to lower the price below the psychological support at around $6,000, but it was not possible to consolidate there.
So, Godbole believes that the technical analysis data pointing to strong support in the $6,000 area have been confirmed, and the “bottom” is exactly there.
At the same time, breaking through the psychological resistance at $6,800 will open up the way for the bulls to $7,000.
It is worth noting that the trend line runs at around $6,600, and if the price falls below, the bulls may lose control. In this case, with a greater probability of the rate will rush to the minimum value of August 20th at $6,230. At the same time, short-term support may be $6,500.
~$6550 will likely offer short-term support in case of bear break
— CoinDesk Markets (@CoinDeskMarkets) August 27, 2018
As of 13:30 UTC, on August 27th, the price of bitcoin is trading around $6,700.