Bitcoin broke short-term support on high volume and high spread. The support came on the heels of a week-and-a-half-long consolidation within a narrow range.
This is still a long way away, but there is even a possibility that bitcoin will test the $5,000 range as this is the price target for the macro symmetrical triangle consolidation.
Over the course of the last 10 days, bitcoin has managed to rally nearly 20% in value as it burst through two major resistance levels and is now beginning the test of a major macro level:
It’s entirely possible we rally to new highs from here, but for now the bitcoin market structure is bearish as we have failed to break resistance, push new highs and break out of the supply-and-demand channel.
There are major resistance levels to consider when viewing the health of the bitcoin market, but given the strength of the current move, it seems likely we will see a continuation of the uptrend in the price of bitcoin.
The $3,000 level is one of the few established levels that has proven to hold up during a support retest, and right now, it looks as if the price of bitcoin will get a slightly deeper test of the $3,000 values.
Days and days of sideways consolidation and tightening volume has been the name of the game for the bitcoin market as it prepares for bitcoin’s next price move:
For the last week, bitcoin has been pretty tightly coiled in a relatively narrow range. A breakout of the range in either direction will likely yield a strong continuation in the direction of the breakout.
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