Bitcoin sellers had their shot. They missed.
The price of bitcoin broke above a swing area between $81,517 and $82,833 on September 21. After that break, buyers largely held support near the top of that area—until yesterday.
Sellers pushed the price back into the swing area and then below its lower boundary at $81,517, opening the door for further downside momentum. However, after moving toward the September 20 low at $80,106, just above the natural support at $80,000, the selling stalled. Sellers turned back to buyers, and the price snapped higher.
In trading today, that recovery has taken bitcoin back above the swing area high at $82,833. Buyers have regained some control, but they still have work to do.
The next upside targets are:
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$83,963: The falling 100-hour moving average.
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$84,522: The 200-hour moving average.
Getting above those moving averages—and staying above—would strengthen the bullish bias and open the door for another run toward the late-September and early-October highs, including $87,374, reached on September 23.
For now, the same technical area that helped define the bias coming into the week remains the key barometer: $81,517 to $82,833.
Stay above $82,833, and buyers keep the recovery alive. Move back into the swing area, and that recovery loses some traction. Break below $81,517, and sellers regain more control.
The lesson for traders is that a break needs follow-through. Sellers got their break yesterday, but they could not sustain the momentum. Buyers now have their opportunity. The hourly moving averages are the next test.
This article was written by Greg Michalowski at investinglive.com.