Bitcoin buyers defend key support, but the hourly moving averages remain the next hurdle

<blockquote>Bitcoin buyers defended the August 21 low area and the 38.2% retracement at $74,713, but the rebound is now running into the 100-hour and 200-hour moving averages. In the video above, I outline what buyers must do to take more control and the levels that would put sellers back in charge.</blockquote><p></p><p>Bitcoin moved to a new low going back to August 21, but the sellers could not extend below the 38.2% retracement of the rally from the August low. That retracement comes in at $74,713. Buyers returned and pushed the price back toward $76,800.</p><p>That bounce is encouraging for buyers, but there is still work to do. The price remains around the 100-hour moving average at $76,840 and below the 200-hour moving average at $77,250. Getting above both moving averages, and staying above them, is needed to give the buyers more control.</p><p>What buyers need to do</p><p>The first step is to reclaim the 100-hour moving average at $76,840. The more important confirmation would come from a move above the 200-hour moving average at $77,250.</p><p>If buyers can get above and stay above both levels, the next upside targets would be:</p><ul><li><p>$79,837, a swing area that capped rallies earlier this month</p></li><li><p>$81,517 to $82,281, the upper resistance zone</p></li></ul><p>The price has repeatedly found sellers near $79,837. A break above that level would be another bullish step and would open the door toward the higher resistance zone.</p><p></p><p>What sellers need to do</p><p>The sellers had their shot on the break to a new low, but they could not get below the 38.2% retracement at $74,713. That failure allowed buyers to return.</p><p>The support area between $75,668 and $76,229 is now the near-term downside barometer. A move below that area would weaken the rebound and put the $74,713 retracement back in play.</p><p>If the price breaks below $74,713 and stays below it, the failed rebound would shift more control back to the sellers. The next retracement levels would then come in at $72,375, the 50% retracement, and $70,038, the 61.8% retracement.</p><p>Trading education: A bounce is not the same as a breakout</p><p></p><p>Holding support can start a rebound, but it does not automatically give buyers control. Confirmation comes when price also gets above the resistance levels that stopped the prior advance.</p><p>In this Bitcoin setup, the $74,713 retracement helped define support. The 100-hour and 200-hour moving averages now define the next resistance test. In my book Attacking Currency Trends, I emphasize using technical levels to define the bias and risk. Here, getting above and staying above both hourly moving averages would confirm that the buyers are taking more control. Failure to do so keeps the market in a more neutral battle.</p><p>The technical roadmap</p><p>The bullish trigger is a sustained move above $77,250. That would target $79,837, followed by $81,517 to $82,281.</p><p>The bearish trigger is a move below the $75,668 to $76,229 support area. That would bring $74,713 back into play.</p><p>Between those levels, the price action remains a battle. The buyers defended support, but they still need to prove they can clear the moving-average resistance. The price action will provide the next clue.</p> This article was written by Greg Michalowski at investinglive.com.