Trend line at $7254. Key level for buyers/sellers
The price of bitcoin just moved to yet a new session low. The price dipped to $7211 on the coinbase exchange. That took the price below a trend line on the hour chart at $7254 currently (and moving lower), but the price has bounced. It trades at around $7290.
Will the buyers come in against the trend line?
It is a risk defining levels for traders looking for a place to buy.
The caveat for buyers is that the price has moved back below the 200 day MA at $7917 today (see green line in the chart below). The price has not closed below that MA since October 2015. That is bearish. So, a corrective move, may have overhead resistance to contend with on the topside.
We sit on a key level for bitcoin in another sharp down day. Will the buyers have the courage to stick that toe in the water? Or will the longs - who are hanging on for dear life - throw in the towel and keep the downside momentum going. Key battle.
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