Consolidation Leans Toward a Strong Bitcoin …

After days of sudden, strong selling, bitcoin has managed to find a local bottom in the low $7000s where it has been drifting around aimlessly. As many traders on Twitter have noted, we have formed a large consolidation pattern called a symmetrical triangle (outlined in red):

Figure 1: BTC USD, 1-Day Candles, Macro Symmetrical Triangle

Symmetrical triangles are consolidation patterns that are typically agnostic regarding their breakout direction. However, one important thing to note about this consolidation pattern is it embodies some of the hallmarks of a reaccumulation trading range (TR) — most notable is the volume profile:

Figure 2: BTC-USD, 12-Hour Candles, Volume Trend

Overall, the entire volume profile of the symmetrical triangle is sloping downward — this is indicating consolidation in the market. If we look closer at the consolidating volume trend, we can see a few details that are worth noting:

1. The red arrows are pointing out the decrease in volume off the peaks of the…