Up $446 on the day. Tests 200 hour MA and 38.2% retracement.
The price of bitcoin is trading up around $446 at $7376 on the Coinbase exchange. The high for the day reached $7439.51. The low extended to $6919.05.
The pair has been moving up since the start of the day. The price was trading near the 100 day MA (blue line) at that time (currently at $6986.30 and moving higher). The move away from the 100 hour MA, attracted more buyers and they ultimately pushed the price to the 200 hour MA (green line currently at $7346).
The price has been trading above and below that MA line over the last 10 hours of trading. We currently trade just above that MA line. The next key target to the topside is at $7490 which is the 38.2% of the move down from the March 21 high to the April 1 low.
Getting above that retracement level will give the buyers the next positive reinforcement from the price action.
What would spoil the run and the fun for the longs/buyers?
If the price starts to trade more below the 200 hour MA and then below the prior swing highs at $7275 and $7200, I would expect the buyers to become nervous – especially if the price cannot breach the 38.2%.
SUMMARY: So the buyers took the price to the next target area and stalled (at the 200 hour MA and the 38.2% retracement). The area gives buyers cause for pause but if buying is resumed and the area broken, I would expect more buying and higher prices.
The not so good news for the longs/buyers, would be a move back below the 200 hour MA and then the $7275 and $7200 old swing high levels The last 10 hour so hours have been able to stay above the $7275 level. So buyers are holding on to the corrective move higher, but the time is ticking. If the buyers lose faith, the digital currency can easily roll over.
Key area. The market has all eyes on the next move.