December 9, 2022

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Bitcoin/Ethereum runs back to the downside

2 min read

China reiterating crackdown on mining

The price of bitcoin has run back to the downside after China reiterates a crackdown on mining.  

Bitcoin on the daily chart

The price is back below its 200 day moving average currently at $40,059. The current price is trading at $37,690 in volatile trading. 

The price of the main digital currency bottomed at $30,000 earlier in the week.  Although well-off that level now, the technical bias is more negative below the 200 day moving average.

Drilling to the hourly chart below, the highs both yesterday and today stalled near its 100 hour moving average (blue line currently at $41,355). The price has subsequently moved below its 50 hour moving average (black line) – which was support earlier in the day – at $39,765. Those levels will now be upside resistance/risk for sellers. Stay below is more bearish.

Bitcoin on the hourly chart has dipped below its hourly moving averages

Meanwhile, the price of Ethereum has also moved sharply lower. After trading as high as $2942.62, the price has moved down to a intraday low of $2382.73. It currently trades at $2476, down $286 or -10.37%

Looking at the hourly chart below, the price high yesterday stalled right around the $3000 level.  That will be a key level going forward. 

The price has been trading above and below the 50 hour moving average for most the last 8 to 10 hours. The break to the downside will now have traders using that moving average as a resistance/biased level (currently comes in around $2703).  Stay below is more bearish. 

Ultimately, if the buyers are to take more control, they will get above the 50 hour moving average, but also the falling 100 hour moving average (near $3000 now) and the the swing area also near that level.  Failure to do that, and the sellers hold more control in the short term/intermediate-term. 

Ethereum on the hourly chart

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