Yesterday, Bitcoin’s price soared sharply. Pres. Obama’s executive order was the catalyst for Bitcoin’s rise. The executive order from Pres. Priorities include financial stability, responsible innovation, and maintaining the country’s financial edge.

These actions, and even more importantly the non-confrontational language seemed to open up the possibility of greater acceptance for digital currencies. The price moved strongly higher, closing above the 100 hour and 200-hour MAs in this process (see the blue and green lines in chart above).

It did not reach its 100-day MA at $42508 (see the blue line below on the daily chart). This was the goal for trading today. It was not to be.

The price has retraced all gains and is currently at $2700, which is below the $40000 mark. The current price is $39,261

The hourly chart at top of this post shows that the price fell below the 200-hour moving average (green line at $40,282) as well as the 100-hour moving average ($39,467) (blue line in chart above). The current price is $39,251, meaning that the bears have more control than the moving average levels. One attempt was made to push the price higher during the North American session, but sellers opposed the 200-hour moving average and drove the price down.

What’s next?

There are many ups and downs in the price action. This can be seen on both the hourly and daily charts. This is the nature of the beast.

The MAs on an hourly chart will be used to determine the risk/bias. Bearishness is greater below the 200- and 100-hour MAs. This is the current situation.

If you move above these MA, the bias will be in your favor. The focus will return to the 100-day MA at $43,509.

The bears will have the upper hand if this is not the case. They will be able to support themselves with next major support targets just above $37000 (from $37015 – $37169). If you move below this level, the door will open for more selling.