Bitcoin buyers are trying. But can they give the digital currency another shove?
Is there a chance for a Bitcoin Christmas rally?
Well, if you read my comments on the digital currency, you know that I firmly believe that if the price action and technical tools don't show signs of a bullish bias, it ain't bullish.
Looking at the hourly chart above, the price yesterday held below the 100 hour MA (blue line) on the Coinbase exchange, BUT found support buyers ahead of previous lows.
Today the price has moved higher. The low was at $3325. The high reached $3486. The current price is at $3430 is up $58. Moreover the price has moved above the 100 hour MA at 3419.52. Yippee. That is good news for the bulls
The not so good news is the price moved above a topside trend line and backed off. The price has also not gotten to or above the 200 hour MA at 3518.26 (and moving lower - see green line in chart above). The last time the price closed above the 200 hour MA was back on December 3rd.
Which gets back to the needs for price action and technical tools to show a bullish bias.
- The price is above the 100 hour MA which is a step in the bullish direction, but there needs to be more.
- There needs to be a run above the topside trend line and the 200 hour MA. Failure to follow up the 100 hour break with a 200 hour break is not convincing. The buyers are not really winning..
So for the buyers, if you want a Christmas rally to replenish your stocking with some good cheer, you need more support and upward price action that will tilt the bias more to the upside. Absent that, Santa Claus is really the Grinch in a red outfit and there is a greater shot for even lower levels into the end of the calendar year.