On Monday, the price of bitcoin moved above its 100 and 200 hour moving averages. The question at the time was "can the price stay above those moving averages and pushed toward other upside targets" (see post from Monday here).
In my post on Monday, I said:
"If the price [of Bitcoin can stay above the 100 hour moving average], and rotate back above the 200 hour moving average with more momentum, we could see a rotation back toward the swing high from April 13 at $41,557. Above that is the 38.2% retracement of the move down from the March 28 high which cuts across at $42,247.51."
The price of bitcoin did move back above the 200 hour moving average. Although the momentum was the first limited during trading yesterday, the price ultimately pushed higher into the close. At the close, the price was testing the swing high at $41557.
In trading today, the price momentum continued its run to the upside reaching a swing high price for the day at $42,220. That was just short (within $25) of the 38.2% target at $42,247.51.
Sellers leaned against the resistance target at the 38.2%, and pushed the price back to the downside. The $41,505 level was rebroken to the downside. The current price is trading at $41,217.47.
What next?
The 100 and 200 hour moving averages are near converged now between $40,487 and $40,568. A move below those levels would tilt the bias back to the downside.
Conversely, if those moving averages are tested and support holds, and/or the price moves back above the $41,557 level, it would open the door for another run toward the 38.2% retracement at $42,247.51.
