Bitcoin can’t extend to new highs on the first test. Backs off.

Bitcoin moved sharply higher yesterday and reached an intraday high of $73,600. That was within $200 of the all-time high reached back in March at $73,794. The price has backed off today and trades down by $738 or -1.01% at $71,991.

The move to the upside extended into what I have as a swing area between $71,958 and $73,794. In trading today, the price has moved outside of that area to the downside falling to a low of $71,313.

Taking a look at the short-term 5-minute chart, the price has trundled lower. There is support near $71,500 (see red numbered circles on the chart below).

On the topside, getting back above the 100/200 bar MA at $71988 and $72197 respectively, and the downward sloping trend line near $72,340 .

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