Sudden drop on Sunday after run up away from MAs on Saturday.
While Ripple does its thing (see Adam's post here), it is helping to drag Bitcoin higher with it (but at a slower pace).
The price of bitcoin on Coinbase had a rock and rolll weekend when on Saturday buyers leanded against the 100 hour MA and shot the price from $3912 to above $4000 and a high price of $4188.79. That euphoria was short lived, however, as the price tumbled back lower and below the 100 and 200 hour MAs (blue and green lines in the chart below).
The fall took the price to a low of $3712 where a trend line stalled the fall. Lookng at the daily chart, below, the pair was also retestig the key 100 day MA at $3732.63. It looks like the buyers might survive the fall below the key 100 day MA - at least for now.
In the last 7 or so hours, the price has recovered. The digital currency is up about $62 after the $476 fall from the Saturday high to the Sunday low.
What next?
The price is approaching the 200 hour MA at $3879 and the 100 hour MA at $3924. The price tends to show some respect to those MAs. On Friday and again on Saturday, buyers leaned against the MA line. On the way down, the price picked up momentum on the break of each (it was kinda a free fall).
Watch that area above for risk defining sellers with stops on a break higher. If it hold resistance, we could see a run back down toward the key 100 day MA (over time). The price has closed above the 100 day MA for 6 straiight days (today is day 7). Key level on the downside.
