Yesterday in a post, I speculated that the Bitcoin's move to the upside was potentially a signal "a bottom is in place".
After all, the price moved above a trend line on the hourly chart, the 100 hour moving average and 200 hour MA. All were bullish technical developments.
There was work to do, but the picture was looking a bit more positive. That is if the price could stay above the 200 hour moving average.
Well, that 200 hour moving average could not hold support, and neither could the 100 hour moving average and the broken trendline.
The price raced to the downside, taking out the low from January 10 in the process at $39,558. The low price for the day extended to $37,683.90.
Looking at the daily chart, that low at $37,683 approached a swing low going back to August 5 at $37,300 (there were three lows around that date between $37,300 and $37,639). That corrective low area is putting a stall on the fall for now at least.
What would hurt this resumption of the negative bias?
Remaining focused on the daily chart, the swing low from September 21 came in at $39,573 the swing low from January 10 came in at $39,558.70.
Those two levels now become close resistance and a close risk level for bitcoin. Stay below keeps the sellers firmly in control. Move above and there will still be work to do on the topside, but holding below from August and moving back above the September and January lows would be a more positive development.