This week realized a big gain as bitcoin enjoyed a 25% rally from its local bottom before topping out around $4,400. Support currently appears to be established in the mid-$3,000s as the market remains indecisive over its next move:Figure 1: BTC-USD, Daily Candles, Current Support LevelFigure 1 shows the relevance of the current support level as it represents a previous support level that was never properly retested during last year’s parabolic bull market. At the moment, we are currently seeing some resistance around the macro, 78% Fibonacci retracement of the parabolic run-up. To date, bitcoin has realized a whopping 82% devaluation from its all-time high to the current low in the mid $3,500s. If our current support holds, we should expect to see a battle over the 78% retracement values where, if the overhanging retracement level breaks, we will likely encounter another level of resistance in the $5,000 region. But, for now, the market needs to tackle the 78% Fibonacci before worrying about the overhanging resistance levels.On the lower time frames, we can see bitcoin is finding nice support on its 23% retracement which also happens to be the previous high:Figure 2: BTC-USD, 4-Hour Candles, Current Low Time Frame Support LevelThe lower time frames are consolidating on top of the previous high and just below the macro 78% retracement. Off the $3,500 low, we saw a decently strong rally with high volume ...
