Bitcoin Price Analysis: Sign of Strength Shows Continued Buyer Interest

At the time of this article, the news from the Winklevoss ETF being denied by the SEC is still fresh and it is unclear what impact it may have on the overall macro trend of the market. Prior to the ETF ruling, the bulls continued to show demand as the bitcoin market saw a strengthening rally supported by expanding volume:

Figure 1: BTC-USD, Daily Candles, Macro Trading Range

Shortly after the retest of the trading range (TR) spring discussed in our previous bitcoin market analysis, the price strongly reacted by breaking through notable resistance on expanding spread and volume. Surging out of a spring on expanding volume and spread is a textbook characteristic of a “Jump Across the Creek” (JAC). I won’t bore you with the minutia of TR anatomy, but you can basically think of the JAC (sometimes called a Sign of Strength) as a test of demand after the market has proven to show signs of seller exhaustion. Essentially, the creek can be thought of as a wavy area of resistance that…