Bitcoin Schmitcoin

The price of ether has been dropping like a rock over the last few weeks as it managed to realize a 30% devaluation in a very short period of time.

Bitcoin's price has managed to hold a higher low for the first time since the beginning of the bear market and is currently seeing a strong rally that has it testing key resistances.

After a strong round of selling over the course of two weeks plunged the price of bitcoin back to the $6,000s, the cryptocurrency now seems poised for another upward swing.

In two short weeks, ETHUSD was devalued by 50% of its market value. With little to no relief for the underwater bulls, ether seems to be accelerating downward as buyer confidence is lacking and showing signs of capitulation. The entire crypto market, as a whole, is showing signs of capitulation as many alts have seen similar devaluations in shorter periods of time than ETHUSD. Similar to many other coins, ether is penetrating long-held support with very little ease:

Although the overall volume trend is consolidating, it is pretty clear that sell pressure is still very present relative to bitcoin's recent bullish rally.

If the market holds the 200 EMA level, it is likely that expanding volume will react on any rally coming off the 200 EMA support.

In our previous discussion, a strong possibility for a retest of the low volume spring was noted as the market was beginning the early stages of an inverted head-and-shoulders...

While it is inherently bearish to push below a trading range, there are a couple arguments that can actually put a bullish twist on bitcon's deep test of support.

While the market seems to be continuing its drift to new lows with greater and greater ease, there are a couple of bullish signals worth considering as the market continues to consolidate.

The current market trend has managed to find support on the prior lows; however, the support seems to be on shaky ground as it is currently trending in a pattern known as a bear flag.