Bitcoin technicals: The technicals are weaker on Bitcoin. Traders on bearish alert.
Google news impacts the flows
The flows in Bitcoin are more bearish in trading today. The digital currency is trading down -$442 on the Coinbase exchange at $8629.78. The low reached $8585. The high stalled at $9340. As reported earlier, Google is taking a harder line on cryptocurrencies. That is not good for feeding the beast.
Having said that, the technicals play a role in this market as news can ebb and flow and the potential for breaks can easily turn buyers to sellers and sellers to buyers.
Looking at the daily chart above, the price has been trading above and below its 200 day MA now for 6 straight days. The longer a currency (inclusive of digital) non-trends, the better chance for a trend to start. We are currently below that 200 day MA at $9091. Closing down here would be the lowest close since early February. The bias is more bearish.
Drilling to the hourly chart below, the price is now moving away from its 100 hour MA. It waffled above and below that MA all day yesterday, and into the trading today. The move lower has also taken the price below its trend line connecting recent lows at $8807 (currently). Stay below is more bearish from that perspective.
So the fundamental picture took a hit from the Google news today and the technicals are backing up that story, with it's own bearish story line. Stay below trend line at $8807 on the hourly (close risk), and the 200 day MA at $9091, keeps the sellers in charge.
Is it time for the price to make a move after 6 days of consolidation. Traders are certainly on high alert.