The bearish news is out on Bitcoin, but what are the charts saying NOW?
SEC postpones key decision on crytocurrency ETF
The SEC announced they would kick the can down the road on a decision on whether it would approve a bitcoin ETF. The ETF was proposed by VanEck - investment firm - and SolidX - a financial service company. It was the 3rd attempt for approval. The first two were rejected. This one was not rejected but was postponed. The news sent the price of the digital currencies lower. Bitcoin is currently down about -$400 at $6473. The low reached $6395. The high reached $6876 (on Coinbase exchange).
Technically, looking at the hourly chart above, yesterday the price moved up to the 100 hour MA (blue line in the chart above) but could not sustain momentum above. The news sent the price moving lower and away from that MA line. The low today did stall right at a lower trend line. That has led sideways action over the last 8-10 hours. The trend line is moving lower and a move below at $6341 will now be eyed by sellers. Buyers are so far leaning against the level. Key level for the traders now in the digital currency.
On the daily chart below, recall that the price in July stalled ahead of the 200 day MA. That was more bearish techncally (see green line in the chart below).
The fall below the 100 day MA (blue line in the chart below), added to the bearish bias. The next targets from that chart are the swing lows at $6075, $5873 and the low for 2018 at $5777.
So the selling today, was supported by more bearish clues from the daily chart.
Well, we know of the support from the hourly. That is real. That will need to be broken to keep the momentum going toward lows swing lows on the daily chart ($6075 being the first).
If the support does hold (and so far it is), looking at the 5- minute chart below, the 100 and 200 bar MAs are lagging behind at $6494 and $6550 respectively. Moves above both those MAs would muddy the downside momentum. Combined with holding the trend line on the hourly chart, could lead to more buying. Watch those MA levels for clues.