Following last Friday’s drop, bitcoin has found itself coiled, once again, at the bottom of the range it established back in December. With the current market unable to close a new high, the market finds itself in a precarious position:
Figure 1: BTC-USD, Daily Candles, Range Support Test
The blue support level shown above illustrates the boundary of the multi-week range bitcoin has been bound by. At the time of this article, the market is testing the support level but has yet to close and continue below. We did see a temporary close below the support level, but there was a very short-lived rally on low volume shortly after popping the fresh low.