Bitcoin Price Analysis: Consolidation Tests Strong Macro Resistance

Summary:

  1. Our last weekly candle closed with a massive reversal doji, indicating a large amount of effort by the bulls that got 100 percent matched by the supply of the bears. It was a “high effort, low result” situation that often marks the top of macro rallies, as it represents bullish exhaustion.
  2. Whether we choose to range here for an extended period of time or we see new lows in the bitcoin price remains to be seen. But the demand in the market seems to be lacking, and the current supply seems to be squashing the price as we continue to establish lower lows and lower highs on the intraday charts.
  3. The macro trend is still very strongly bullish and has yet to show any real signs that the bullish market model is broken. We had several months of strong, back-to-back growth, and a possible retracement might be in store. The video above outlines a strong weekly band of bitcoin prices that is acting as resistance. If we can’t break the level and find it as support, however, we may be in store for deeper lows.

Trading and investing in digital assets like bitcoin is highly speculative and comes with many risks. This price analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Inc sites do not necessarily reflect the opinion of BTC Inc. They should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.

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