Yesterday I outlined how the price of Bitcoin continued to move up and down but had a short term positive bias.
I outlined and spoke to the 100/200 hour MAs as support and that if the price could stay above, the buyers would hold the bias. I also spoke to the up and down trading range with the 50% retracement as the upper extreme.
On the downside, the recent lows down to $18157 would be support target should the bias shift more to the downside (i.e. on a momentum move below the 100/200 hour MAs).
Today, dip buyers did do a good job of basing the digital currency near the 100/200 hour MA. Eventually, buyers used the clue (and perhaps risk-on flows) and started to push the price sharply higher.
The move to the upside has been able to get above targets outlined yesterday:
- "Traders will watch near the $19,650 area high ahead of the 38.2% retracement $19,923.37. Move above both those levels would open up the door for further upside momentum with the 50% midpoint at $20,469 as a logical target to get to and through to increase the bullish bias."
Those targets were indeed broken. The high price today has just reached $20411 (see the current bitcoin chart at the top of the post). That is within $58 of the 50% retracement target as well as the swing high targets (red numbered circles on the chart above)..
Risk focused sellers should lean against the 50% retracement area (and swing highs) with stops on a break above with momentum. For traders looking for more upside momentum, getting and staying above that 50% is obviously a target that would need to be broken to keep the bullish move going.
On a correction off the 50%, traders will look back toward the 38.2% at $19923 as the downside target. Stay above or near that level, and the price can base and make the next run to the upside.
So traders have seen a nice move to the upside today and broken above some key levels. However, the biggest target going back to September 13 remains in play at the $20469 area. Key level for buyers and sellers. The battle is on.