Yesterday I outlined how the price of Bitcoin continued to move up and down but had a short term positive bias. I outlined the 100/200 hour MAs as support and if the price could stay above, the buyers would hold the bias. I also spoke to the up and down trading range with the 50% retracement as the upper extreme. On the downside, the recent lows down to $18157 would be support target should the bias shift more to the downside.
Today, dip buyers did do a good job of basing the digital currency near the 100/200 hour MA. Eventually, buyers used the clue (and perhaps risk on flows) and started to push the price sharply higher.
The move to the upside has been able to get above targets outlined yesterday:
- “Traders will watch near the $19,650 area high ahead of the 38.2% retracement $19,923.37. Move above both those levels would open up the door for further upside momentum with the 50% midpoint at $20,469 as a logical target to get to and through to increase the bullish bias.”
The high price today has just reached $20411. That is within $58 of the 50% retracement target.
What next?
Risk focused sellers should lean against the 50% retracement area with stops on a break above with momentum. For traders looking for more upside momentum, getting and staying above that 50% is obviously a target that would need to be broken to keep the bullish move going.
On a correction off the 50%, traders will look back toward the 38.2% at $19923. Stay above or near that level, and the price can base and make the next run to the upside.
