Bitcoin continues the run lower

As opposed to the tumble yesterday which moved the price of Bitcoin from $64000 to $58800 in about 15 minute window, today there has been a more orderly fall.

As outlined earlier in a post (see post here), getting below the 200 bar MA (green line in the chart above, was needed to tilt the bias to the downside. That MA based the pair yesterday before moving to the $64000 high. It then stalled the sharp fall from the $64000 level to the $58800 area. Earlier today a low held support at the MA level.

So there was a history of the MA providing support.

In the US morning session, the price did break below that MA level. Buyers turned to seller. The price fell to $61535, retraced and this time, used the 200 bar MA as resistance instead of support (near $62400). Buyers turned to sellers. The bias shifted at least in the short term to sellers..

The price has now moved to a new low at $60500.

The fall from the 200-bar MA near $62400 isn’t the $5000-$6000 decline seen yesterday, but it was moved about $2000 so far. Moreover, the shorter-term bias has shifted more to the downside.

The next target is the 50% of the move up from yesterday’s low. That level comes in at $60178. Move below that, and the sellers add to their short-term control.

This article was written by Greg Michalowski at Source