Bitcoin Breaks Down!!

Our optimism for bitcoin planted face first into reality yesterday as bitcoin broke down from what we thought was a bull wedge pattern. The divergence between the Kovach OBV and the consolidation pattern we saw yesterday should have been a clue that it would break to the downside. Luckily, 54.3K has provided good support and will likely continue to do so, but if not, 52.8K will provide further support. This appears to be the lower bound of the range, so it is certainly possible to test this level again. On the upside, we have several technical levels to cross before considering highs again, including 56.8K and 57.7K.