Bitcoin tumbles lower. Looks toward a test of the October low
Current price is down about $500 on the day
The price of bitcoin on the Coinbase exchange (7 day work week), is trading down around $500 at $7584.80. The low for the day reached $7374.50. The high extended up to $8114.97.
Technically, looking at the hourly chart, the digital currency tried to rise toward its 100 hour moving average in yesterday's trade (blue line on the chart above), but stalled ahead of that level. When the price started to move below the $8000 level and then a lower trend line at $7829, the selling intensified and did not stop until reaching the session low (at $7374.50).
The price is approaching its October 23 low at $7296.44. A move below that level will next look toward the 61.8% retracement of the move up from the December 2018 low. That level comes in at $7231.40 (see the daily chart below). A move below that level and we should see further momentum selling to the downside.
Of note technically as well, is that at the recent highs, the price has been able to stay below its 200 hour moving average (see green line in the hourly chart above), and MOSTLY below its 100 hour moving average and topside trend line (there were small breaks of each, but upside momentum was limited). BEARISH clues.
Ultimately, if the prices is to rebound, it would need to get and stay above each of those declining levels. Currently they are lagging behind with the 100 hour moving average at $8179.64 and the 200 hour moving average at $8376.13. The topside trend line is in between those levels. Close risk for shorts would be the lower trend line currently at $7829.
For now, the focus is on the targets below with the October 23 low at 7296.44 the next key target for traders with close risk at $7829.