After a nearly ten week climb from the bottom at $4,210 that took it to $10,000 Bitcoin futures have left the recent upward channel breaking clearly below it in trading today. The support line I am referring to (dashed red line in first chart) was touched upon nine times on the way up to $10,000.
Last Friday we spoke about my long term projected price average and although it was not intended as a support/resistance line it did indeed prove to act as resistance as the rally of the lows in mid-March was stopped dead in its tracts May 7th and 8th. In both days edging over this line intra-day only to close below it like every other candle so far this year.
In the past many traders and market analysts have looked to outside markets in order to get a better sense for the commodity or index they are involved in. One example of this is forecasting future moves in gold by observing movement in equities, crude oil or treasury yields in order to gauge the influx or outflow of capital in the precious metal.
Despite the fact that BTC has had three consecutive down days or red candles, it resembles more of a consolidation period I believe then a pivot point. One pattern I have noticed a lot in BTC recently is a tri star formation, and we see it three times so far appearing at three distinct resistance levels before breaking above them.
Before I go into today’s article I would like to point out a mistake in yesterday’s article at the end of the equation I solved it said $650 was the price per Bitcoin after the first halving took place, while it was in fact the price after the second halving.
