Bitcoin buyers give up. Price tumbles lower.
Reverses the gains from Sunday's trading. Back below 100 and 200 hour MAs
On Sunday, the price of bitcoin based at the 100 and 200 hour MA and ran higher. That move took the price from $3833 to $4088. The digital currency on Coinbase, did make it to a higher high on Tuesday - reaching $4114.
Today, those gains evaporated with the price plunging from $4029 to $3757 in the course of a single hourly bar. That's a 6.7% fall in value. Ouch. In the process, the price cracked back below the 100 and 200 hour MAs at $3983 and $3900 respectively.
Now the price has been waffling back and forth since December 18th with most of the price action between $3600 to $4100. That is a big range, but it gives perspective.
In between are those MAs. They help to define a bias. From the December 29 to January 6th, the price waffled above and below the MAs, as the market debated the next move. That happens. Nevertheless, traders need technical clues in volatile instruments like bitcoin. Today's plunge was confirmed by the sharp fall back below those MA levels. Sellers are back in control.
The 200 hour MA is now close risk for shorts. Stay below, more bearish.
On the downside, the 50% of the move up from the December 2018 low comes in at $3684. Below that the 61.8% (and lows from Dec 27 and 28) at the $3500-$3600 area will be eyed.
Sellers are back in control but getting out the range is still a goal for a clearer picture for bitcoin.