Buyers remain in firm control above the 100 hour MA.
The price of Bitcoin on Coinbase continued it’s run to the upside today with another all-time record at $28580. The low today has reached $26900 at the start of the session.
What are the charts saying?
The most interesting chart is the hourly chart currently (see chart above). Since December 11 low at $17581.65, the price has seen two runs to the upside (we may be starting the third now).
The first run to the upside took the price from $17581.65 to $24300. The price corrected sharply on December 21 to a low of $21913.84. That low was just above the 38.2% of the move up at the time at $21733.59 (getting within a few $100 is close enough). The bigger “tell” for the buyers was the holding of the 200 hour MA on December 24 (see green line in the chart above). Staying above, kept the buyers firmly in control. The next surge to the upside was on.
The 2nd trend run saw the price move from the December 21 low at $21913.84 to the December 27 high at $28387.00. The correction off that high retraced toward the 38.2% at the end/start of Dec 27/28 at $25914.25. Buyers reentered near the support (there was a brief dip but the price quickly rebounded higher).
Like the previous base against the 200 hour MA, the “tell” for the buyers on this run higher, was the subsequent holding of the 100 hour MA (blue line) during yesterday’s trading. There were two separate tests and each found willing buyers.
Buyers remain in control above the 100 hour MA and that MA remains as the close risk going forward. Move below and there could/should be more corrective price action to the downside.
As mentioned above, traders could be starting a third leg to the upside off the December 28 low. If so, staying above the 100 hour MA and seeing another break and run higher would be what traders will be eyeing. Admittedly, the price did make a new high today, only to fail to keep the bullish run going today. However, that was the pattern back on December 25. What is more important from a technical perspective, is that the price remains above the rising 100 hour MA. Do so, and all is right with the bullish trend.
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