200 day MA remains a key downside target
On Friday, the price of bitcoin (on Coinbase), moved to a low of $7540. That took the price below its 200 day MA green line currently at $7896.67 and rising. However, the price momentum could not be maintained and the price rocketed back higher.
The corrective high on Friday reached back up to $9090. That correction over the weekend extended up to $9499 (call it $9500 - see hourly chart below).
The highs on Saturday and Sunday were able to extend above the 100 hour MA (blue line in the chart below), but the market stalled and the price has rotated back down. Recall, the tumble from last weeks trading started when the price could not get back above both the 100 and 200 hour MAs (blue and green lines on Jan 29 and Jan 30th). If the buyers are to take back control, getting and staying above those MAs would change the negative bearish bias. The first two tries over the weekend, have failed.
SUMMARY: The bearish bias continues as the new week begins. The key on the downside, will remain the 200 day MA (at $7896.67 currently). If there is a break, the buyers many not be as anxious as the first look last week. The price is still $500 away but keep that key MA in mind.
For the longs/buyers, they want to see the 100 hour MA be broken and remain broken. Staying above will then start to target retracements at $9620.20 (the weekend trading could not get to that level), the 200 hour MA (green line) at $10,034 and moving lower) and the 50% of the last move lower at $10,262.77 (see hourly chart).
