Returns to Wednesday's low on bounce. What were the technicals that drove the moves...
The price of bitcoin continued its fall in early trading today.
Looking at the daily chart above, the price decline moved toward the 61.8% of the move up from the July low at $3024.64, and the swing high from June at $3000. The low extended to a low of $2975 - breaking below each of those levels, but could not keep the momentum going. The snap back rally started.
What were the technical clues that traders started to build the reversal?
In addition to moving back above the $3000 level and the 61.8% retracement at $3024.64, the move above the 100 and 200 bar MAs on the 5 minute chart (blue and green lines in the chart below) helped to turn the technical bias back to the upside. The 200 bar MA was first broken, then retested. The holding was the signal for the shorts to cover and new buyers to stick the toe in the water.
What now?
Looking at the hourly chart below, the move higher has taken the price up to the low from Wednesday's trading at $3736 (the high reached $3732 so far). A move above that level will look toward a test of the key 100 hour MA at $3866 currently (it is moving lower). The move below the 100 hour MA last Friday (see blue line on Sept 8th) started the bearish run). That will be a key level. Be aware.
On the downside, keep an eye at the $3569 level (that is the underside of the broken trend line on the 5 minute chart. Below that, the 3513 is the broken 38.2% of the move down this week.
