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Bitcoin slumps to a new 2018 low. What next?

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The digital currency takes out the old low at $5873 on Coinbase

The price of bitcoin on the Coinbase exchange, has reached a new 2018 low of $5825. For the day the price is currently down -$303 at $5830 – just off the low.  

The prior low for the year was in February at $5873. The next target from the daily chart above, is the November 2017 low at $5511.  A move below that level and things could get even more ugly for the digital currency.  

Remember, the low price in 2017 was $734. There is a lot of room to roam if the story for bitcoin becomes more and more bleak and if traders/investors move more and more into the red. 

Adding to the bitcoin story woes (hacking, money laundering, regulation) is that Japan’s biggest bitcoin exchange suspended new business on Friday (see story from WSJ here).  In addition, the price action and technical picture is certainly not looking too hot. 
  • The price has been below the 200 day (currently at $10,041 since March) and the 100 day MA since mid-May (currently at $7883.42). BEARISH.
  • Looking at the hourly chart, the digital currency tried to break and stay above the 100 and 200 hour MA (see green and blue lines in the chart below), but failed on Friday and tumbled lower. BEARISH.   The price is currently below a lower trend line.   A move above the 38.2% of the last move down at $6208 (currently) is a step in a more bullish direction.  Ultimately a move above the 100 and 200 hour MAs (now moving lower), would be needed to give buyers/longs a reason to feel some of the selling pressure is over, but the price would have to stay above those MAs.  Needless, to say, since the peak near $20,000, the rallies have seen pockets of strength, but those corrective moves fade away.

For now though, the bears remain in firm control and all buyers/longs for 2018 are feeling the pressure. 

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