Last week, we saw a violent move to the upside as bitcoin rallied 11% over the course of one day. Since peaking in the upper $3,600s, bitcoin has seen close to zero bullish follow-through, and the price has begun to drift downward over the course of the last week:Figure 1: BTC-USD, Hourly Candles, Downward DriftDownward-drifting markets like this can often be a sign that distribution is taking place. It represents an overall lack of bullish pressure. And, from the volume profile, we can see that selling pressure has remained constant throughout the week of downward drift:Figure 2: BTC-USD, Hourly Candles, Sustained Selling PressureWe can see in the figure above that every attempt by the bulls to push the price upward was quickly and easily countered by bearish pressure. The highs are getting lower, and the lows are getting lower, and we can see that every attempted rally is being sold into as supply continuously surfaces.Similar to the lower time frame trend we just discussed, the higher time frame trend is also exhibiting lower highs and lower lows. Additionally, the figure below outlines the key overhanging resistance levels we must break if we want to a sustained rally:Figure 3: BTC-USD, Daily Candles, Overhanging Resistance LevelsBecause crypto is so volatile, sometimes it helps to clear things up by looking at the closing price of the daily candles. Although wicks contain very important information, if we just focus on ...
