Trend line held the rally yesterday. 100 hour MA stalled the rally today.
Bitcoin on Coinbase is trading down around -$260 at $6019. The price has traded as high as $6290 today and as low as $5900. The fall below the $6000 was the first time since June 30th. Looking at the daily chart, the low from June reached $5777. That is the low for the year. The low from February reached $5873. Moves below those levels will open up the downside for the digital currency.
Drilling to the hourly chart below, the price yesterday traded mostly above the 100 hour MA (blue line in the chart below). However, when the price reached the topside trend line, sellers leaned. The price moved back lower and below the 100 hour MA. That turned the bias around and made the MA resistance.
That MA held on the rally toward the line today (at resistance – see chart). Again sellers leaned. The price moved lower.
Going forward, that 100 hour MA remains a key level to stay below. You can add the trend line as well. Both are moving lower, helping the sellers manage stops lower over time.
Again, the lows from February and June are the next targets. They could/should make selling more difficult. Traders in bitcoin like to lean when they can and the lows are close enough to stall the falls.
However, if there is a break, be aware of a run lower.