Bitcoin moves off double bottom. Buyers back in it but resistance looms.

Technical Analysis

Author: Greg Michalowski | bitcoin

50% retracement is next target

The price of bitcoin bottomed at the 2018 low at $12800 and holding a key technical level is all buyers need to give the long side a shot. 

The price has since moved higher and looks toward the 50% midpoint as the next resistance target (this is from the bitstamp exchange). That level comes in at $14197.46.  

A move above that level will have the traders looking up toward the topside trend line at $14623 (that is moving lower over time). 

The 100 hour MA (blue line in the chart above) is not too far from that level at $14786 (also moving lower - see chart above).

Trading bitcoin is about minding the risk from the long side.  Moves below MAs, double tops, broken trend lines give more bearish clues and reasons to exit trading positions.   

Trading bitcoin, is also about targeting levels on the moves lower. 

Since bitcoin is predominantly a one way market in the physical market (i.e. you can't sell short in the physical market), buyers tend to be lurking and looking for a bottom clue/target. 

The inability to break the 2018 low was the clue buyers needed today and the price has moved higher. 

Now it is about getting back above technical targets like the 50%, trend line and the 100 hour MA.  Longs/buyers are trying to take back control after the move lower over the last 4-5 days. They held the 2018 low. Can they take the next steps?