Bitcoin trades to the lowest level since November 11

The price of bitcoin is trading down -$3890 or -4.39% at $84650. The low reached $83,365 which was the lowest level since November 11, shortly after the election of pro-bitcoin Pres. Trump. The day after the election in November, the low was at $67445. The price high from January reached $109,356 (up 61%).. From the high, the price is down -22.65%.

Technically, since November 19, the price has been in an up and down trading range between $90,747 and $109,356. That range was broken yesterday. The momentum took the price down to near the 38.2% retracement of the move up from the August 5 low. That level came in at $86,520, but bounced and closed at $88,567.

Today, after skimming along highs near 89,000 in the Asian session, buyers turned back to sellers pushing the price below the 38.2% retracement at $86,520.

The 38.2% retracement level is now a close risk level for sellers looking for more downside. It also represents a potential buying point if broken on the upside for buyers. It represents a key barometer for both buyers and sellers today and going forward.

On the downside, the 50% of the same move higher comes in at $79,467 which is just below the natural support and $80,000. Move below that level and things could get even more ugly from a technical perspective.

Contributing to the declines include:

• The hack and heist of $1.5T from Bybyte (Ethereum tokens). North Korea is being blamed for the heist.
• The ubiquitous risk-off fears is also be blamed for the sharp sell off.

This article was written by Greg Michalowski at www.forexlive.com.