Turns to the $ 30,000 and 50% retracement level
The price of bitcoin has consolidated above and below the 100 and 200 hour moving averages over the past 6 trading days (see blue and green lines in the chart below). The moving averages had converged, indicating a market with no trend. Buyers and sellers are fighting.
Yesterday, the price fell below the converging moving averages, tipping the bias further downward, and in the early hours of today’s trading the pair retested the falling 100-hour moving average just so that the seller enters before the level. This kept the bearish bias intact. The salespeople were in control.
The price dropped lower today and is currently down $ 3,800 to $ 31,100. The day’s low hit $ 30,800.
The next target comes at the January 12 low of $ 30,100. Just below is the 50% retracement of the move from the December 11 low at $ 29,811.24. Going below each of these levels should open the door to further downward momentum. The January 4 low (and the low of the year) hit $ 27,678. That would be a target level with the 61.8% retracement at $ 26,937.91.
On the top, climbing above the broken 38.2% retracement at 32,684.57 is the first step in rebuilding a positive bias. Ultimately, however, reaching and staying above the 100 and 200 hour moving averages is key to medium term bullish sentiment.