Bitcoin dips back below the $50,000 level

The high price reached $50,562 in trading today

The price of bitcoin moved back above the $50,000 level earlier today for the first time since May 15. However, the price has dipped back below the key level over the last few minutes of trading. 

The high price reached $50,562 in trading today

Technically, looking at the hourly chart above, the move higher based over the weekend against a swing area between $48,075 and $48,190 (see green numbered circles and lower yellow area). 

That hold was the clue for traders to make a run toward the $50,000 level, and they did that earlier today. 

The move to the upside did have to extend above a higher swing area between $49,505 and 49,833 (see red numbered circles). Once that hurdle was overtaken, the price pushed above the $50,000 level.

Now, the decline off of the high, has taken the price back within that upper swing area (between $49,505 and $49,833) with the low price just reaching $49,661 so far. Buyers are trying to stall the correction within that swing area.

In the short term, if the price can stay above that higher swing area (red numbered circles), the buyers are still more in control despite being below the $50,000 level. 

However, a move below would likely lead to more disappointment off the failed $50,000 break. I would expect a further rotation back down to perhaps test the rising 100 hour moving average currently at $48,494.  Move below that MA would likely lead to further downside probiing. 

For now, the buyers are still in control with hopes of getting back above the $50,000 level and staying above on second attempt.

Taking a broader look at the daily chart, a move higher would next target the 61.8% retracement of the move down from the April 14 all-time high. That level comes in at $51,030.45.

Bitcoin on the daily chart


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