High on Friday reached near $42K.
The price of bitcoin has now reached down to a new low of $30,251. The high today (on the Coinbase exchange) reached $39071.13. The price closed on Sunday at $38048.94. The high price from last week, and the all-time high price, reached $41986.38. The % move from that high to todays low was a -27.9% haircut.
Having said that, technically, the fall from the high still remains above the 50% of the move up from the November 26 low at $16200 (the last major corrective low before surging higher). Moving below that level would weaken the technical picture more off the daily chart.
Drilling to the hourly chart, the selling in the digital currency started to gain momentum early in the session after breaking below its 100 hour moving average (blue line), rebounding and finding sellers against that same moving average line. That gave sellers more confidence a correction lower was likely.
The pair then cracked back below the 200 hour MA (green line) – then retested that line just like the 100 hour MA. The sellers took the price to the new session lows (see hourly chart below).
The low price was able to get below a trendline back to December 16, December 24, December 25 and again on January 4. That trend line currently cuts across at $30,932. However momentum could not be sustained on the break, and the price is trading back above that line.
Going forward if the trendline is broken again, look for more selling momentum with $29,811 as the next target (50% of the move up from the December 11 low). That is the next key level for both buyers and sellers. Be aware.