Bitcoin continues to hold support against the December low

Bitcoin is staying above the December lows so far

The price of bitcoin moved down to a low price yesterday of $42,413.59. The low price today was just above that level at $42,414. The price high has reached $43,782.86 today.

Both yesterday’s low and today’s low stalled ahead of the December low at $41,967.50. It also stalled within a swing area going back to January 2021 between $41,967 and $43,021 (see green numbered circles in yellow area).

Back in September, the price moved below that swing area, testing the 100 day moving average in the process. Despite a break below the 100 day MA, the momentum slowed and the price started to based against that moving average before moving higher toward the end of September.

On the current run to the downside, the price moved below the still rising 100 day moving average back in early December (and stayed below). In January, the price has been able to stay below the 200 day moving average currently at $48,098.53. So the sellers are more in control.

However, despite the fall, the price still remains above the lows going back to January 2021 near $28,600 (the low price from June was also near that level).

The price DID move below the 61.8% retracement of the range since the June low at $44,032.80 yesterday, and remained below the level today. That level will be a close risk defining level in the short term.

Sellers are in control, but get below the $41,967 level and there should be more downside momentum.

Stay above, and get back above the 61.8% retracement level at $44,032, and there could be a run back toward 45,655 (swing lows from December) and the 200 day moving average $48,098.71.

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