Price

Last Friday, we discussed a macro resistance level bitcoin would likely test. The level was tested three times prior and immediately rejected. Now, for the fourth time, we find ourselves situated above the level as we wait to see if our support holds.

Bitcoin continues to coil tightly within its range-bound market as the bulls and bears fight it out to see which is most dominant.

Bitcoin finally broke a new high but was rejected immediately, setting us up for a reversal called a “Swing Failure Pattern.” The failure to close above the new high could mean the a liquidity run took place for large institutions to short the market.

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.

Shortly after falling from its test of the low $4,000s, bitcoin managed to find support in the mid $3,500s. This has proven to be...

Over the weekend, a strong round of selling wiped out a week and a half’s worth of buying pressure.

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.