Bitcoin trading price is pulled back to the support line

Bitcoin prices have been moving lower on the back of selling pressure, but have not yet reached a new low. It seems that buyers are considering the $270 range as a psychological level, and sellers have not been able to break this level to create a lower low.

Bitcoin Price Analysis

Bitfinex 1-Day Chart

~From xbt.social's report earlier today:

The 20-period moving average (green) on the daily chart has been broken for the second time, but no panic selling has followed.

While it may happen later, we have to assume that the market is not interested in moving downwards right now. Sellers are either unwilling or unable to initiate a new downtrend, which is probably why the price line is beginning to shift upwards as we saw this morning.

However, putting assumptions aside, the light blue band represents the 10% envelope of the 100-period moving average (orange), and on the Bitfinex daily chart, its upper boundary is currently close to $267. A test of this level could happen at any time, and a downside breakout could provide enough technical justification for a sell order.

We continue to maintain our expectation that this is a correction pattern before an upward move. The first target will be the 1-hour 200-period MA (Bitfinex) at $282 and then, of course, the key psychological level of $300.

Gold, which has been falling, has fallen below $1,100 in early Asia-Pacific trading.

Google search interest in Bitcoin is on the rise.

~ ~ I pay more attention to controlling the rhythm of the bear market. Learn how to control the risk of loss. The first priority of financial management is not to let your risk of loss get out of control. - Schwartz Marty

Summarize

This morning, Bitcoin price broke below the daily 20-period moving average, and the prospect of a decline is technically feasible. However, the sellers’ inability (or unwillingness) to promote further declines makes us biased towards the eventual upward outlook. We acknowledge the signs of continued decline, but still stick to the previous expectation that the price will consolidate above $272 and then rise again.