Bitcoin stumbles... and then falls. Bearish. Price moves below and away from key MA level.
Bitcoin on Coinbase turns more bearish technically...
The price of Bitcoin on Coinbase fell toward the 200 day MA on Tuesday and again yesterday (green line on the daily chart below). The price did dip below the MA line (it was $8296 yesterday) but dips were met with buyers. It spurred on my post from late yesterday titled "If you like Bitcoin, this is the area to buy".
That trade came with a caveat though.
Now, I would not fall in love with a long. If the price starts to trade comfortably below the 200 day MA I would exit. But if it holds, who knows with the digital currency. It would take a move back above the 50% (at $8501.72) and stay above and a move above the July low at $9071 to give buyers some additional comfort.
So what happened?
To see, you have to look at the hourly chart below. I have put too horizonal lines
- At the 200 day MA at $8296, and
- At the 50% retracement at $8501.72.
Looking at the chart, late yesterday traders did start to lean at against the 200 day MA at $8296. The price moved higher and did get above the 50% retracement at $8501.72. Buyers were making some progress.
However, the high stalled at $8659.40 - short of the $9071 low from July. The subsequent stumble - and then fall - took the price back below the $8501.72 level. NOTE how the price was ablle to stay below that midpoint retracement level. BEARISH.
Over the last 4 hour or so, the price has been able to move away from the 200 day MA (today it is at $8317.08) and the 50% after some ups and downs. The low reached $7712.45. We currently trade near $7925.
It will take a move back above the 200 day moving average at $8317.08 to hurt the bearish bias now. After that, it will once again need to get above the 50% at $8501.72 level. The story remains the same. Him him
On the downside, the swing low from June comes in at $7427. The 61.8% retracement of the move up from the December 2018 low comes in at $7235.17. Those are the next downside targets for the pair.
So in summary, the buyers had their shot to push off the 200 day moving average but failed. Sellers were happy to keep the control and scare the buyers and the price has moved away from the 50% retracement and 200 day MA. Going forward, watch the 200 day MA as a key bias defining level now. Stay below keeps the selllers in firm control technically.