Story not so great for the cryptocurrency
Some recent posts on crypto include:
- WSJ: Hundreds of cryptocurrency offerings are using fraudulent tactics
- Regulators in US and Canada target ICOs: WSJ
- Spoofing, front-running, manipulation in cryptocurrency trade ... forewarned is forearmed
- Fed's Kashkari comments on how cryptocurrencies have become "a farce"
- Chinese State TV says cryptocurrency bubble continues to grow
- BOJ Kuroda says that central banks are 'extremely cautious' on issuing digital currencies
That is not a lot of positive for the cryptocurrency market.
However, with the polarization of bitcoin/digital currency market, it can be easier to speak poorly about the product (and admittedly we don't post all the stories fit to print).
So listening to the price action and tools applied to that price action, tell a story too.
For Bitcoin on Coinbase, the price action is to the downside today. The price is down -$190 at 82220. The low extended to $8145. The high reached $8414.95.
The tools applied to that price action shows, the price is below the 200 and 100 hour MAs (blue and green lines in the chart above). The 200 hour MA is at $8356.17 and the 100 hour MA is at $8319.83 currently. The price action has taken the price below and away from those MAs. Over the weekend, the price action did move above those lines, but could not get to the next target and the topside trend line. The news and price action, helped to send the price lower.
The next target on the downside will target swing lows from March 16 at the $8103 area (see chart above)
Looking more broadly at the daily chart, the price action has been able to stay below the 100 day MA for 11 straight days now (today is the 12th). That MA comes in at $8843 today.
Admittedly, the price is not racing lower, but the sellers/bears still are more in control. The next targets on more selling would be swing lows at $7927 and $7822. Move below them, and the door opens for more selling potential. A trend line cuts across at $6995 (and moving higher)
So the news is not that hot/bullish, and the price action and tools applied is also not that hot/bullish either. However, that sentiment can change. For Bitcoin, getting back above the 200 and 100 hour MAs would turn that bias.
Until then, the sellers are more in control.
