Bitcoin tips into the red for the day, but hangs onto bullish bias.
Market is consolidating over the last 24 hours
This week, the price of bitcoin has moved from a low of $3128 on November 15 to a high yesterday at $4175. That's a 33.47% increase from the lows. Forget that the price has moved from +19K, it is still a decent run higher. The catalyst for the move technically, was the move above the 100 and 200 hour MAs (blue and green lines) on Monday. That triggered a bullish bias, and covering/buying was on (the 200 hour MA was at $3327 on Monday).
Over the last 24 hours, the price has been consolidating in an up and down range with $4175 as the high and $3878 as the low. We currently trade at $3947, down -$47 on the day.
You can argue it is a consolidation of the 33% rise. You can argue the rise has run out of steam near the $4000 level.
So what is right?
Looking at the hourly chart above, the consolidation is allowing the 100 hour MA to catch up to the price. That MA is still lagging below at $3755, but it is moving higher. Remember the break above on Monday, triggered the run higher. I will continue to use that MA as the barometer for the bulls/bears. Stay above, bulls in control. Move below, bears taking back control.
On the topside, we have moved closer to targets including $4277 high for December and the 382.% (and high from November 29) at $4431.93 area. Those levels could stall rallies. Breaks above would be more bullish though.
So at $3953ish, the price is between support at the key 100 hour MA and the highs/retracements at the $4277 and $4431 levels. The up and down trading over the last 24 hours highlights the markets apprehension/uncertainty. At some point, however, the market will make up its mind and make a run. For now, the bulls remain more in control.