Bitcoin technical analysis. Digital currency back down testing/breaking the 200 hour MA

Technical Analysis

Author: Greg Michalowski | bitcpin

A clear break is eyed

The price of bitcoin moved higher yesterday and into today. In the process, the price of the digital currency moved above its 100 (blue line) and then the 200 hour MA (green line).  

Below is the chart of the price action on the Bitstamp exchange.  The high price today stalled around the 61.8% at $16416.67. The high price extended to $16480.51 on the day. The price has rotated back lower and trades above and below the 200 hour MA (currently at $15235.77).  The price is back below the 50% retracement at $15412.96.  Technically, a move back below the 200 hour MA would be a more bearish signal for bears.  Until then, the buyers still have an edge (technically).


How does the price action and technicals look on Coinbase, another leading exchange for bitcoin?

Looking at it's hourly chart below, the price of bitcoin on Coinbase peaked today at $16490. That was pretty close to the high on Bitstamp. The prices on each exchange can be quite different depending on liquidity conditions on each exchange.   The fall from the peak has moved lower and also trades around the 200 hour MA (green line).  On Coinbase, the 200 hour MA comes in at $15428.65 - about $207 above the Bitstamp MA.  


The price action on each exchange tracks each other. They really should be the same on each, but arbitrage is not easily done due to the time it takes to transfer positions from one wallet on one exchange to the other. Also shorting outright is not an easy feet. So that makes the prices different on respective exchanges.    

Nevertheless, traders who are concerned about risk, will use tools to define a bias.  If the price breaks below the 200 hour MA, that is more bearish.  If the 100 hour MA (blue line) is broken too, that is another step in the bearish direction.  Right now, each are testing the higher MA line. A break and move below the respective 100 hour MAs, will be eyed for a more bearish bias.