Digital currency based at the 200 hour MA yesterday
In a post yesterday - "Bitcoin down for the 2nd day in a row, but is there a technical reason to buy?"- there was indeed a reason to buy.
That reason was the holding of the 200 hour MA (green line in the chart above).
The buyers took it from about $8900 to a high today of $9369 and in the process, moved back above the 50 and 100 hour MAs (white and blue lines in the chart above). Not a bad move (a 5.2% move).
We currently trade off that level at $9245, but the price remains above the 100 hour MA at $9128, the 50 hour MA at $9028 and that 200 hour MA at $8897.90. All those MAs are moving higher.
What now?
Well, with the MAs moving higher, the buyers will be tested if the price does not keep the upside momentum going. Moves below will weaken the bulls hands. The waters will be muddy.
Right now, however, the buyers stay in control by bottoming near the 200 hour MA and staying above the higher 50 and 100 hour MAs. Those are the keys.
If it happens, the next topside targets come in at the 200 day MA at $9912 and the topside trend line at $10,031. Get above will be more bullish.
