Bitcoin off to a weak start in 2020
Bitcoin on Coinbase is down $-265 and back down below $7000
The price of bitcoin is off to a weak start in 2020. The price on Coinbase is trading down $265 at $6951.83. The hi reached $7217. The low reached $6903.
In addition to breaking back below the natural level of $7000, the price is moving further away from its 100 and 200 hour moving averages. Those moving averages currently come in at $7219.51 and $7231.48 respectively.
Over the last 7 or so trading days the price has been fluctuating below and then above those moving averages. The high last week extended up to $7531 after breaking above the moving averages at $7239 on December 28.
The price move back below the moving averages on December 30. They were retested on December 31 and again on January 1 before rotating back to the downside yesterday. Bearish
In addition to the fall below the moving averages, the price today also fell below the 50% retracement of the move up from the December 18 low at $7059.50. Bearish.
That break targeted the 61.8% retracement at $6910.93 next. Buyers have leaned near that retracement level. We are currently seeing a modest bounce. It will likely take a move back above the 50% retracement level at $7059.50 to solicit more buying.
Should the price break below the 61.8% retracement, however, I would expect further downside momentum. The low price in December reached down to $6430. That would be a target on increased selling pressure.