100 hour MA catching up to the price
The consolidation continues for bitcoin since the run to upside stalled on Friday.
Looking at the hourly chart, the consolidation is allowing the 100 hour MA (blue line) to catch up to the price. There is still a gap between the MA at $5462.17 and the price, but with the MA moving higher, we get a key test. Look for buyers on the first look.
Drilling to the 5-minute chart below, the pair has traded above and below the 100 and 200 bar MA on that chart today (blue and green lines). The pair is testing the 200 bar MA right now at $5631.34. A move above that MA would swing the bias back to the upside (bullish) for the crytocurrency. Note earlier in the day, the price broke below the MAs, then tested and held. So this is a key intraday test for the buyers and the sellers. Move above is more bullish. Stay below and the sellers are taking back control (there would have been two successful tests today).
Consolidations allow for the market to digest moves and decide whether continue or not. The price action in the short time period charts can see the price waffle above and below the moving averages. However, those MAs can also tell a bullish or bearish bias story. Right now, for bitcoin, we are at a key crossroad. The buyers and sellers will decide. The good news is risk (and bias) can be defined and limited at the MA lines too. So it is time to listen to the market.