Cracks 100/200 hour MAs and runs lower
The price of bitcoin on Coinbase exchange is trading down -$344 on the day at $6355.85. The high today reached $6815.892. The low has extended to $6320.16. Looking at the daily chart below, the price highs off June lows, could not make it to month ago highs at $6913. The price also fell short of the May low at $7058. Apart from the initial spike higher on the first trading day of the month, the price have been waffling higher but not a fast pace.
Drilling to the hourly chart below, the trade lower accelerated today, when the 100 hour MA, a trend line and the 200 hour MAs were broken. Prior to today the 200 hour MA had not been breached since the spike higher on June 30th. Falling below was more bearish technically, and the price tumbled lower.
The fall has taken the price to the 50% of the move up from the June 24th low. That comes in at $6310.74. The low today got within $10 of that midpoint level. A move below is now eyed by the bears.
The buyers in bitcoin continue to stumble and fall on rallies. This is despite continued optimism (or so it seems).
Forbes has an article from a contributing author titled “Bitcoin Looks Likely To End The Year Around $10,000 Barring Positive Regulatory News”. That is a 57% rise from here. The 2017 market continues to influence mindsets.
CNN has another article titled “Bitcoin is down 66%. But it still may be the future of money”.
I will prefer to follow the price action and let it – and the technical tools applied to it – to write the stories. The rest is just guessing.