If you like Bitcoin, this is the area to buy

The 200 day MA was broken but momentum stalled

If you like bitcoin (using Coinbase), this is an area to buy.

The 200 day MA was broken but momentum stalled
The price on the daily chart above fell below its 100 day MA (blue line) a few week's ago and cracked below July and August lows yesterday at $9071 and $9321 areas. 

The run lower raced through the 50% retracement at $8498.67 and the 200 day MA (today at $8296.35. The low $8159 before bouncing.  Today the low reached $8222.01. 

The fall below the 200 day MA was the first crack below that MA since Apri; 2nd.  It should have solcited more selling but there has been some stall.   There is some profit taking/buying interest near the MA (or so it seems). 

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% and stay above and a move above the July low at $9071 to give buyers some additional comfort.  

So dip buyers in bitcoin, this is a nice technical area to dip a toe in the water, but be careful.  

ForexLive
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