Technical Analysis

If you like Bitcoin, there is a trend line to lean against

..but be careful

The price of Bitcoin on Coinbase is lower by about $187 at $3710. The move lower got going again, when yesterday, the price on the hourly chart tested the converged 100 and 200 hour MAs (blue and green line).   The price did try to go above those MA line, but the attempt was quickly rejected.

The fall lower today has now taken the price to a lower trend line connecting recent lows (see red numbered circles).  

If you like bitcoin and want a low risk level to lean against, this is a level to lean against for a trade. Hold and we could see a retracement back toward the MAs where the market tries again. Move below and the lows from 2018 will be targeted.

I am not all that bullish on the overall look of the chart. The digital currency failed to stay above the 100 and 200 hour MAs for long in this consolidation period. However, if risk can be defined and limited, you never really know how support holding, can lead to a push back in the opposite direction.   Be careful though.  

ForexLive

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