The high price for the day tested the 100 hour moving average and found sellers
bitcoin tumbled yesterday falling close to $11,000 from the high to low. The low price dipped below the 38.2% retracement of the move up from the January 27 low to the February 21 high but quickly rebounded.
That rebound saw the price move back between the digital currency's 200 hour moving average (green line in the chart above), and the 100 hour moving average (blue line in the chart above).
At the start of the trading session today, the price was testing the upper extreme at the 100 hour moving average. Sellers leaned. The price fell below the 200 hour moving average and the selling accelerated to the low today of $44,888.
Since then, the price has been consolidating between $49,705 (just below the $50,000 level) and the day's lows. The current price trades around $47,350.
What next?
I think it makes sense to reestablish the $50,000 level as a resistance level above. Stay below and there should be more downside probing.
On the downside, the 50% retracement of the move up from the January 27 low comes in at $43,761.50. That also corresponds with a swing low going back to February 10 where the price bottomed before starting its next moves to the upside. If the price moves below that level, anything can happen.
For now, the buyers and sellers are fighting it out in a wide near $5000 trading range with the shorter term bias a little more to the downside.
