SECs Gensler is putting the heat on the Bitcoin and a technical break is hurting.
Bitcoin is feeling the pinch from the regulation of fears. Charles Gaspirino from Fox news is tweeting:
Regulatory headwinds like this, have the bitcoin buyers stepping to the sidelines. Gensler is not a fan of bitcoin and the regulatory battle is likely not to disappear anytime soon .
Technical breaks have also contributed to the downside momentum.
Looking at the hourly chart above, the price has moved over 13% to the downside from last week's high at $48,834. The low price today reached $42,453 so far. It currently trades around $43,700. That still down around 7.5% on the day.
Technically off the hourly chart, the price on Sunday moved back below its 100 hour moving average (blue line currently at $47,459). In trading hours today, after trying to hold support against the 200 hour moving average (green line currently at $46,881.64), that level gave way and opened the door for more aggressive selling to the downside.
The low price from September 13 at $43,400 and the low price from September 7 at $42,900 have each been broken, although the price currently trades above each near the $43,700 level.
The price in the last three hourly bars have traded above and below the $43,400 low from September 13. Are the dip buyers trying to make a play? My suspect is that if the price were to start to trade more comfortably below the $43,400 level, the dip buyers would give up and let the "gravity" of today's downside action "happen".
Taking a broader look at the daily chart below, the price today fell back below its 200 day moving average at $45,848.15. Bearish.
The 100 day moving average (blue line in the chart below) is below at $40,771.42. That level would be a target on the downside. Just above that is the 50% midpoint of the move up from the July 20 low which comes in at $41,126.43. That makes the $41,000 area a key area for support potential. It would take a move below those levels to open the door for further downside momentum.
One thing to consider is that the July low was all the way down at $29,296.39 along with the June low at $28,600.That is a reminder of the volatility of bitcoin. It wasn't long that the price was over $14,000 lower from today's current levels. Of course it also wasn't long ago (September 7) that the price was also $9000 higher from today's levels.
If you play in bitcoin, you agree to the risk and volatility from the price action. Paying attention to the technicals the way to define and lower your risk, and take advantage of trade opportunities.