200 hour MA stalls the rally
The price of bitcoin moved higher yesterday and in the process moved above the 100 hour MA (blue line in the chart below). That was a bullish move as on May 27 AND May 28th, that MA stalled the rallies. Getting above was a change in the momentum/bias. The price moved higher.
Where did it go?
The 200 hour MA becomes one of the next targets. In trading today, the price moved to that MA line (green line) on a three separate occasions. Each found sellers leaning against the level. Finally, the buyers gave up. The sellers grew and started to win. The price moved lower.
The fall has taken the price below the 100 hour MA now (blue line). That MA comes in at $7331.92. We currently trade at $7293, down $205 on the day.
If the price can stay below that MA, the sellers are putting the pressure on the buyers again. A move back toward the lows at $7058 might be in the near future.
Taking a broader look at the daily chart below, the low from yesterday did find support against a lower trend line on that chart. The buying against it, was a low risk trade. The price moved higher for the test of that 200 hour MA.
As a result, going forward, a retest may attract the same buyers but if broken, the door would be open for more selling. Be aware.
