Bitcoin trades back below the 200 and 100 hour MAs. More bearish

Technical Analysis

Author: Greg Michalowski | forex-technical-analysis

Down -$1000 on the day

The price of bitcoin on the Bitstamp exchange is trading down over -$1000 on the day and in the process has crossed back below the key 200 (green line) and 100 hour MAs (blue line).  That gives the digital currency more of a bearish bias.  Yesterday, the price fell back below the 200 hour MA but stalled near the 100 hour MA. Today, there was more momentum below the 100 hour MA (blue line) and the corrective moves higher today, stalled ahead of that MA line. 

In the volatile digital currency, it is important to define technical bias as the price action can take the price lower or higher by a large amount. From Dec 17 to Dec 22, the price moved from a high of $19666 to a low of $11159.  The fall got it's bearish clue from the fall below the 100 and 200 hour MAs at that time.  

The 200 hour MA comes in at $14894. The 100 hour MA comes in at $14618. Traders who are short (bias is bearish below the lines), can use those levels for defining risk. Stay below is more bearish. Move above is turns the bias back to the bullish side. 

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