Bitcoin threatening to break down after 6-day consolidation
Bitcoin is starting to move after six days of consolidation. The cryptocurrency's last leg down began on 5 May and ended a week later on 12 May, just above $25k. Since then, bitcoin has been up to but has battled to overcome $30k. As a result, the cryptocurrency is now breaking down from its consolidation.
The right side is a close up of the daily price action on the left. The candle for 20 May is a reference candle, i.e. it has a lower high to either side of it. Today's price action is testing the reference candle's low. If bitcoin closes below $28,676 today, it will be lower than the reference low. This price action will be a bearish development - it may be the beginning of the next leg lower.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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