Yesterday - and earlier today - bitcoin tested its 200 hour MA (green line) and found support buyers (see post from yesterday HERE). The bounce off that MA line yesterday saw a bounce back toward a swing level near $44456. Sellers leaned against that level and pushed the price back toward the MA level.
That 200 hour moving average was later joined by its rising 100 hour moving average (blue line).
Today, once the price fell below BOTH those MA levels, the buyers started to shift toward selling. The last five hours have seen more selling in the digital currency.
The move to the downside has now seen the pair digital currency toward a lower swing area. That area was formed by swing lows from February 12, February 13, and February 14 between $41,575 and $41,825. The price low today reached between those levels at $41,632.17.
Like the 200 hour MA, the area could provide support with a subsequent bounce back toward the 100/200 hour MAs. Dip buyers can lean against the area with risk defined and risk limited (put a stop below the area).
Alternatively, if the downside is still preferred, getting below the swing area should increase the bearish bias more and have traders looking toward the 38.2% at $40.960.54. From there, a break back below the $40,000 level would be eyed with the 50% midpoint of the move up from the January 24 low at $39,450 as the next major target.
Technicals often play a role in the volatility in the digital currencies including bitcoin. The 100/200 hour MA set up moves higher yesterday and lower today (after the break below).
Now a swing area is providing some low risk support for dip buyers.
Pay attention to the technicals, and you may catch some meaningful moves in the digital currencies with risk limited. .
