Bitcoin Price Analysis: Strong Rally Tests Trend-Changing Behavior

In a potentially trend-changing move, bitcoin has now managed establish its first *higher* low since the beginning of this years crypto bear market. In mid-June, after seeing a short-lived bounce from this year’s low in the upper $5,000s, the bitcoin market took a very harsh, unrelenting move that dropped the price from the mid $8000s to the $5900s. After such a strong move, the market managed to stabilize just above its previous low:

Figure 1: BTC-USD, Daily Candles, New Higher Low

Currently, the market is enjoying a steady climb from its newly established, higher low. This marks the first time since the beginning of the bear market that we’ve held support above a previous low. Although this is a definite bullish trend signal, there is still some proving ground left for this market if it’s going to shake off its bearish ways. The next line of defense for the bears lies at the 61%, macro Fibonacci retracement value shown below:

Figure 2: BTC-USD, Daily Candles, 61% Fib…