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  • Bitcoin is battling to break $6,550 hurdle while all eyes are glued on $6,600 in the medium-term.
  • Mike Novogratz says that several companies are offloading crypto leading to the current widespread declines.

Bitcoin and other cryptocurrencies have sustained trading in the green since the opening of the Thursday session. Although Bitcoin price has corrected lower below $6,550 (trimmed gains since the last published analysis), the tables show that it is up 1.15% on the day. Moreover, the trend at press time is bullish above the short-term support at $6,520.

The chief executive officer of Galaxy Digital Capital Management, a renowned investment firm, Mike Novogratz is reported to have corrected his previous prediction for Bitcoin performance. The investment guru said during an interview with CNBC on October 3 that it is very unlikely for Bitcoin to retrace above the $9,000 hurdle this year.

The CEO said that the current declines in the Bitcoin market are mainly fueled by some companies that are offloading digital assets “just to fund the burn rate of the industry.” He clearly stated that the said companies are definitely not recording significant profits in comparison to the 2017’s “crypto boom.”

In November last year, Novogratz predicted that Bitcoin will surge to $45,000 in a period of 12 months. In the summer of 2018, the billionaire investor said that mass adoption of digital assets and the underlying blockchain technology will wait for another 5 – 6 years. He, however, the institutional investor will make their way into the market “in the next two to three years.”

Meanwhile, Bitcoin has formed a short-term bullish flag pattern pending another upside breakout. The price is also trading between the moving average support and resistance with the 50SMA hindering growth at $6.551.35 while the 100SMA is offering support at $6.503.22. A recovery above the short-term $6,520 support is underway and could break the hurdle at $6,550 as well as the 50SMA in the short-term. Another break out of the bullish flag pattern around $6,560 will open the door for gains heading to $6,600. On the flipside, other support levels include $6,460, $6,420 and $6,400.

BTC/USD 15′ chart