Price of bitcoin moves below hourly MA

China news source Caixin is out with a headline saying that China is said planning to shut local bitcoin exchanges.

The price of bitcoin has moved lower on the news and trades below the 100 and 200 hour MAs (blue and green lines). The trend line below comes in at 4262. That is the next target. The 38.2% comes in at 3959.55.

The price of bitcoin moved lower at the start of the week (and below MAs) but recovered into Wednesday and Thursday (and above the MAs). Traders give the benefit of the doubt to the buyers above those MA lines. However, on breaks back below, the market does tend to run. We are seeing a run lower. Be careful longs.

Looking at the daily chart below, since the July 17th low, the price rise to the recent high has been 165.71%. That is a long way in a short period of time. The pair is moving closer to the lower trend line today at 4245 level on that chart. A break of that level would open the door for further technical selling.

You can read the translated article HERE