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Bitcoin/Ethereum runs back to the downside

21 May 2021

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 bitcoin bottomed at $30,000 earlier in the week.  Although well-off that level, the technical bias is more negative below the 200 day moving average.

Drilling to the hourly chart at 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 what support earlier in the day – at $39,765. Those levels will now be upside resistance/risk for sellers.

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

The price of Ethereum has also moved sharply lower. After trading as high as $2942.62, the prices move 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 stall right around the $3000 level.  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 need to get above 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