Another week, another low. Bitcoin’s market has been bleeding relentlessly for weeks and now, after falling 50% in value in just one month, the market has managed to break south of a major bearish consolidation pattern called a bear pennant:Figure 1: BTC-USD, 4-Hour Candles, Bear Pennant BreakoutThis is a massive bear pennant with a staggering $2,000 measured move. In layman's terms: The price target for this breakout would be approximately $1,700, after all is said and done. Now, it’s important to note this is just a projection and it isn’t a guaranteed trajectory, but this setup should not be underestimated. However, if we look at a macro view of bitcoin price levels, the $1,700 price range is confluent with a strong support level:Figure 2: BTC-USD, Daily Candles, Price TargetAs mentioned in previous market analyses, bitcoin has begun to march down all its previous untested support levels, one by one. As each support level proved to be unsustainable, the market has decided to test lower and lower throughout the current downtrend with very little relief for the eager bulls:Figure 3: BTC-USD, Daily Candles, Previous Support LevelsFigure 3 shows all the previous support levels and how they have also coincided with the previous shakeout periods during the parabolic run-up last year. Although we have yet to test new lows this week, something that is slightly concerning is the general lack of volume on thes...
