For several weeks, bitcoin has remained in a consolidating uptrend. The market hasn’t seen a new high since mid-September, but the lows have steadily gained higher and higher ground. Overall, the volume is highly consolidated and the market is ready for a large move — the question is, where will it move next?Figure 1: BTC-USD, Daily Candles, Sideways ConsolidationThe market has been range-bound for weeks and has maintained a very consistent but very non-eventful uptrend. An interesting thing to note, however, is how slowly and steadily the bitcoin market had begun its march toward its multi-month downtrend:Figure 2: BTC-USD, 12-Hour Candles, Historic DowntrendA test of this downtrend will yield important information about what investors can expect in the coming weeks and months. A decisive break of the downtrend will be a very strong buy signal to a lot of large players that have capital sidelined. If the market manages to break and hold support above the downtrend, that will be a sign to many investors that, at minimum, a break of the downtrend is likely and a new trend is likely to develop. Whether that new trend yields a sustained uptrend, sideways consolidation or a temporary reprieve from months and months of a bear market remains to be seen. However, it will, at minimum, be a point of high volatility and likely be the sign of hope the battered bulls are looking for.However, if this test is rejecte...
