Price correction needs to do more to negate the bearish bias.
Yesterday, the price of bitcoin started to move away from its 200 day MA (see "The technicals are weaker on Bitcoin. Traders on bearish alert" from yesterday). Traders were put on bearish alert and the price did move lower. That MA came in at around $9109. PS the price traded above and below the 200 day MA for 6 days. The move away is a divergence. That is bearish.
Today, the price reached a low of $7666 on the Coinbase exchange. That is a pretty good run from that 200 day MA.
The move lower today took the price below a trend line on the hourly chart below. That break failed, however, and we are seeing a corrective move higher. The price of Bitcoin is back trading around unchanged as I type.
What next?
The correction higher today has seen the price move back toward the low from March 9th at $8370. The price moved to $8400 and is back below the $8370 level at $8315 as I type.
Is that good enough for the correction? Does the price go back lower now?
Traders have to be protective of that. The high today now only turned near the old low but also below the 382.% at $8515 of the last move lower. That dynamic, coupled with the run away from the 200 day MA has to be considered. Putting it another way, the buyers have to prove something more than a correction to an old swing low. It needs to get above that level at the absolute minimum. Getting above the 38.2% is the 2nd step (at 8515.56).
Until then, the bears/sellers are still in control.
