RATE Group | Bitcoin Price Analysis: Yearly Support Breaks as Bitcoin Tests …
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Bitcoin Price Analysis: Yearly Support Breaks as Bitcoin Tests …

Bitcoin Price Analysis: Yearly Support Breaks as Bitcoin Tests …

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After months and months of consolidation, the yearly support finally broke and now bitcoin has found itself in the lower $5000s for the first time since 2017:

fig1Figure 1: BTC-USD, Daily Candles, Broken Support

Bitcoin managed to drop a staggering 16% yesterday as the market sliced through the long held support like a knife through butter. The high volume and wide candle spread does not bode well for the bulls as we are currently witnessing an excess of supply in the market. We have blown through two levels of support and haven’t seen a significant retest just yet:

fig2Figure 2: BTC-USD, Daily Candles, Support Levels (shown in blue)

Figure 2 shows the next levels of support below us, but it seems for now we are content to consolidate at the $5400 level. The $5400 is pretty interesting because that is when the market went from being parabolic to *super* parabolic as the market took off on what’s referred to as a “hypodermic trend.” It’s when the market experiences parabolic blow-off…

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