Bitcoin is sharply lower with investors at Celcius stopping withdrawals over the weekend and Binance CEO now saying there is a temporary pause of bitcoin withdrawals due to a "stuck transaction". They say the problem should be fixed shortly. HMMMMM>. The price is trading at $24,042 down -12.61% on the day.
Looking at the weekly chart, the price is approaching its 200 week moving average at $22,372.60. The price is not traded below its 200 week moving average since the week of March 9, 2020. That was just before the start of the pandemic lockdown. Despite the fall from a high of around $69,000, the current price is still some 525% above that March 2020 low. Of course anyone who got in past December 2020 and have been HODLing, they are all in the red.
Of course there are probably stories from the pool guy who is still up the 5x from the March 2020 low, and the landscaper who sold at $69K after buying at the pandemic low (and it was all tax free too).
What now?
Drilling to the hourly chart, the swing low going back to May 12 bottomed near $25,400. The 38.2% retracement of the sharp move down from the corrective high yesterday comes in at $25,282. There should be resistance within that area on any move higher off this low. Absent that, and the sellers remain in firm control.
Last week the move to the downside start after narrow consolidation trading around the 100 and 200 hour moving averages. Sellers started to lean against the 100 hour moving average and the price started to mark lower. Breaking out of the up and down trading range over the weekend tilted the technical balance significantly to the downside. The liquidation was on.
Watch for any retracement that gets up near $25,400. Key area.
On the downside the 200 week moving average at $22,372 is a key downside target.
