The price of bitcoin has seen sellers enter in the last hour or so and the move lower has taken the price back below its 100, and 200 hour moving averages. The 100 hour moving average comes in at $29,846. The 200 hour moving average comes in at $29,757.48. The current price is trading at $29,465 after reaching a low of $29,400.
Looking at the hourly chart, the pair moved back above its hourly moving averages yesterday tilting the bias back to the upside. After breaking above, the price corrected down toward its 100 hour moving average on 2 separate occasions, but found support buyers. The 3rd test could not hold support and as a result, buyers turned to sellers on the break.
Often times, if a technical level holds support (or resistance for that matter) on a couple occasions or more, increases the levels of importance going forward. The level becomes a more important barometer for buyers and sellers. It also becomes a risk defining level and bias defining level.
As a result, the break below that level today turned buyers into sellers
Taking a broader look back to May 13, the price of bitcoin has traded between $28,600 and $31,411. The move back below the hourly moving averages - in between those levels - will have traders now looking toward the $28,600 level on the downside. Close risk is now the 100 and 200 hour moving averages.
Of note, is as bitcoin has declined, so has the NASDAQ index. It trades to a new low as I type at 11307.70. The index is now down around 81 point -0.71%. It is also moving further away from the 50% midpoint of the range since the post pandemic low back in March 2020. That midpoint level comes in at 11449.29.