IS THIS A HEALTHY CONSOLIDATION FOR BITCOIN OR THE CALM BEFORE THE STORM?

If you think this Bitcoin price action seems strange, you’re not alone. Bitcoin may simply be going through an extended consolidation period, and whether it breaks out or breaks down from here, this is starting to feel like the calm before the storm. That makes it a good time to analyze the charts and evaluate targets and invalidation levels.

One of the most bullish things we had in the charts until earlier today was that BTC price was holding above the 50-Day Moving Average. We have now lost the 21-Day, 100-Day and 50-Day which is a sign that technical support is breaking down. The 200-Day MA is currently correlated with the Lower Low at $56.5k, and IMO that is the last line of defense before a cascade that could potentially dump price back to sub $50k levels. There are a few buffer zones between here and there that could serve as support, so let’s look at those to see what levels will either serve as support, or signal a deeper correction.

At the moment $65k is holding. If it continues to serve as support, IMO $65k - $72k makes for a healthy consolidation range. My concern though is that bid liquidity is not super dense at this level and it only gets thinner as we look lower.
If bulls lose support at $65k, I think that $60k comes into focus pretty quickly. My concern there is that bid liquidity is even thinner there. Of course that can change at any time if price moves closer. There is some technical support above $61k that may insulate us from going lower, but that remains to be seen.

If bears are able to push through $60k that opens the door to a potential cascade with the last line of defense at the lower low at $56,500/200-Day MA. If bulls can’t defend that level, it’s a gateway to bearadise at the MACRO Trendline which coincides with our prior consolidation in the $40k - $45k range.

Happy Father’s Day!

Have a great weekend.😎

Opinions Only. No Financial Advice.

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