Yesterday, the price of bitcoin closed above the 100 day MA yesterday for the first time since December 2. ON December 3rd - the day after the last close above the 100 day MA - the price fell below that MA near $54500. Since then the price dipped to a low at $32590 on January 24 and moved to high since then at $45850. On March 2, the price traded above the falling 100 day MA, but failed shortly thereafter and closed the day below.
It was not until yesterday that there was a close above the MA. It is currently at $42156, some $12400 below the $54500 level back on December 3rd, but the price made it above that risk and bias defining level. That tilted the bias more in the direction of the buyers.
Today the digital currency has a low at $43636, above the 100 day MA at $42157, and reached a high of $44240. More importantly, it shifted the bias little a little more in the direction of the buyers.
Is it pedal to the metal bullish?
No. There is work to be done.
The next target at $44,456 (high from January 13) followed by the high from earlier this month at $45,332 and the swing high from February at $45,854 are the next major target on the way to the upside.
They in turn, all come before the 38.2% retracement of the move down from the all-time high reached in November. That 38.2% retracement level comes in at $46,721.
Getting above the 38.2% retracement is the minimum retracement of a trend leg move. If the price can't get above the 38.2% retracement, the correction off the low is simply a plain-vanilla variety.
Another key target to get back above would be the falling 200 hour moving at $48,334. That two is a another confirming moving average that if breached to the upside, increases the bullish bias
So there is work to do. However, what traders now know is that the 100 day moving average at $42,157 (and where ever that goes), will be a risk and bias defining level. Stay above is keeps the buyers in play and comfortable.
Conversely if the price moves below, traders will get out and limit their risk
