Trading away from its 100/200 hour moving averages
The price of bitcoin over the weekend moved to a $33850 on Sunday. The price rebounded toward the 200 and 100 hour moving averages but found sellers against the level.
Trading yesterday so the price move back above the 100 and 200 hour moving averages but stalled just ahead of the 61.8% retracement of the range since January 8 at $37,445.78. The subsequent fall move back below the aforementioned moving averages once again.
Trading has seen the price move back above the moving averages yet again. This time the corrective low found support buyers between those 2 moving averages and we are seeing a bullish run to the upside and away from the moving average levels. The price just reached a new session high of $37,857.
Admittedly, the bitcoin price action is up and down choppy with a number of moves above and below the moving averages. The pair remains above a upward sloping trendline – with the closest at $36,372 (and moving higher) – but also below a topside trend line at $38,574 currently (and moving lower).
Traders are consolidating the unsustainable run to the upside that’s all the price peak on January 8 and $41,986.37.
Going forward, if the price can stay above the lower trendline and the moving averages, the buyers remain in control. Getting above the topside trend line would open the door toward the January 14 highs near $40,000.
Conversely, if the moving averages are broken again to the downside, the bias tilts back lower. A lower upward trend line cuts across at $35,376 (and moving higher). Moving below that lower moving average would have traders looking toward the 38.2% retracement of the range since January 8 high which comes in at $34,640.59.