Looks toward the $30000 and 50% retracement level
The price of bitcoin has been consolidating above and below the 100 and 200 hour moving averages over the last 6 so trading days (see blue and green lines in the chart below). The moving averages had converged indicative of a non-trending market. The buyers and sellers are battling it out.
Yesterday the price moved below the converged moving averages tilting the bias more to the downside, and in the early hours of today’s trading, the pair retested the falling 100 hour moving average only to have seller enter ahead of the level. That kept the bearish bias intact. Sellers were in control.
The price has tumbled lower today and is currently down $3800 at $31,100. The low for the day reached $30,800.
The next target comes in at the January 12 low at $30,100. Just below that is the 50% retracement of the move up from the December 11 low at $29,811.24. Move below each of those levels should open the door for further downside momentum. The January 4th low (and low for the year) reached $27,678. That would be a target levels along with the 61.8% retracement at $26,937.91.
On the topside, getting back above the broken 38.2% retracement at 32,684.57 is step 1 in building back a positive bias. Ultimately however, getting and staying above the 100 and 200 hour moving averages is key for bullish sentiment in the intermediate-term..