Bitcoin technicals: Continues to stall near 200 hour MA
200 hour MA comes across at 4013.09
The price of bitcoin rallied about 38.5% off the Friday low, reaching a double high yesterday and today at the 4122 area. The highs were able to get above the 200 hour MA each time, but rotated back lower. The last hourly bar just took a look above the 200 hour MA at 4013.09, but that look failed as well. We currently trade at 4003.
When the price moves around like bitcoin, the technical levels become ball park areas. The rally from the low on Friday to the high today was over $1100. After the big move, and with the 200 hour MA as a risk defining level to lean against, trading becomes more balance. That is, until the market decides the next fate.
The 200 hour MA remains a key level to get and stay above. As traders we can only look and hope for momentum on a break. So far, there have been breaks, but momentum has died. IN those trades if you get long, get out on the break back below.
If looking to sell, you need to reach lower targets and stay below. Looking at the chart above the 50% at 3948 was breached early in the day but could not sustain the selling. Shorts were forced to buy back.
So overall today, the buyers and sellers are making plays but not getting far. Nevertheless, the technical levels remain in play.
Get above the 200 hour MA and the bias is more bullish. Look for a run above the double tops and a move toward the 61.8% at 4177.91.
Move below the 50% at 3948.23 and the bias is more bearish. A retest of the day's lows with a look back toward the 100 hour MA at 3743.65 (and moving higher) become the targets.
On break, it is up to the market to continue the momentum. If it happens, ride the break. If it fails to ignite one of the bitcoin runs, get out and look for the next trade.