Tumble lower takes the price down to $56,425
The price of bitcoin rallied higher earlier in the day and in the process moved up to test its 200 hour moving average (currently at $61,903.93 – see green line in the chart below).
However, the momentum could not be be sustained and when the price move back below its 100 hour moving average at $61,134, buyers started to turn to sellers.
That dynamic led to a sharp fall that saw the price move all the way down to $56,425. At the low, the price tested the 38.2% retracement of the move up from the September 21 low, and found willing buyers.
Just as fast as it fell down, the price has bounced back higher, and currently trades at $59,936, just short of the $60,000 level.
No one really knows what may happen next in the digital currency. However, the 200 hour moving average to good job of holding resistance and although very quick, the 38.2% retracement held support.
As a result on the wide, the technical levels have defined a loan high range (albeit wide).