Moves above the 200 hour MA and trend line
The daily look at Bitcoin is showing a move back above the 200 hour MA (green line in chart below) at $3937.288. The price is also back above the 50% of the move down from the September 4th high at $3948.23. The pair is also above the topside trend line at $3979. All that is bullish technically.
The cryptocurrency is trading at $3997 currently.
Is the pair making a break to the upside?
Yes. Going forward:
- Stay above the trend line, the most bullish.
- Test and stay above the 50% at $3948.2317, still bullish
- Test and stay above the 200 hour MA at $3937.28 just barely bullish, but still bullish
A move below each of those levels, and the bullishness starts to fade, with a failure of the technical break (below the 200 hour MA at $3937.28), turning the bias back lower (bias bearish).
The pair has actually traded higher than the current level this week, but the momentum failed on each break a short time later.
Today's move is the 4th time... the 4th break.
Will the 4th break, be the charm and lead to more upside (the prior highs this week and the 61.8% at $4177.91 are the next targets)?
The answer lies with the buyers vs. the sellers. The buyers are making a play now. Can they keep that momentum going and in the process overwhelm the sellers? The price action will tell the story.
For the "break out bulls", we can only define our risk and hope the buyers continue to win the battle. If they don't, lose a little. If they do continue to win, they win more than a little.
