The selling intensifies on the break of the convergence of the 100 and 200 hour MAs
Yesterday, bitcoin moved above the 200 hour MA and trend line and I’ve commented on «Is Bitcoin make a bullish break?»
The answer was «Yes», but the price was:
- Stay above the trend line, the more optimistic.
- Test and stay above 50% to $3948.2317, still bullish
- Test and stay above the 200 hour MA (green line in the chart below)
Well, looking at the chart above,
- The price fell back below the trend line. Less optimistic.
- The price fell to below 50%, to $3948.2317 (and stayed below). Get bearish.
- The price has fallen below 200 hour MA (and stayed below) to 3889.487 currently. Bearish.
The price also fell below the low, but rising 100 hour MA (blue line) at $3907.636 currently.
All this has led to a scoot lower in price towards the $3700 area.
The failure to break and run higher — especially above MAs — is to tell me, that sellers are more in control of the market. For merchants, the use of these MAs that the levels of risk now.
Bitcoin was NOT to make a break upward yesterday. In fact, the pair makes more of a bearish break after the failure of the subsequent performance. The sellers are back in control.