Bitcoin falls through $30,000 in another blow to the bulls

Bitcoin falls through $30,000 in another blow to the bulls

The rally in bitcoin is stopped in its tracks.

Three weeks of consolidation in bitcoin was capped by what looked like a break to the upside on Monday but it’s come nearly completely undone today with bitcoin falling $1800 to $29,940.

Bitcoin chart daily

A nice consolidation/pennant formation was followed by an unusually long period of sideways movement, particularly given the volatility in other global markets.

Eventually, bitcoin seemed to catch a tailwind from a strong rebound in stocks, although belatedly. What’s concerning is that even with equities only down moderately (S&P 500 down 0.8% today) bitcoin has nearly given it all back.

A completely retracement would be to $29,400.

Perhaps the bulls can focus on the ‘retest of the break’ philosophy but that works better after a sideways channel.

What’s equally concerning for non-crypto traders is the bitcoin has been a good leading indicator of global market sentiment. This drop highlights the likelihood that the latest bounce is a bear market bounce rather than a bottom.

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