Bitcoin moves back down to test lows and bounces

Technical Analysis

Author: Greg Michalowski | bitcoin

Battle between MAs above and floor below

The price of bitcoin held below the 200 hour MA (Bitstamp exchange - green line in the chart below).  That was enough to keep the buyers nervous and there have been some liquidation to take the price back lower.


That move has taken the price toward swing lows from earlier in the day and from December 25th at $13522.  The low reached $13553 - close enough to attract buyers against the swing lows (see green circles in the chart above).  

So the crypto currency has defined a trading range with the MAs above acting as a topside ceiling and the floor defined by the recent lows at the $13522 area.  A break either way will likely help ignite the next move in bitcoin.  

Any clues from the 5-minute chart?

Looking at the chart below the pair has tried to extend above the falling 100 bar MA (blue line) but with limited success. That MA comes in at $14128.88 (and moving lower). Get above and stay above is a step in the bullish direction but the price has to stay above that MA line.  A break and a failure will not be welcomed by the buyers.  Watch those MAs for closer trading clues.