Bitcoin Weekly: Weak Bounce

Bitcoin is already down testing support at 60k again. Support is support until it breaks, but this weak reaction is not a good sign.

Bitcoin dropped down to 60k again last week.

That’s not a good sign.

Why? Because when price comes down to a support level, you want a strong reaction. The stronger the better. A strong reaction shows that there are plenty of buyers stepping in at the level of support. What you don’t want to see is bounces that get weaker each time.

But this is exactly what’s happening in bitcoin.

After the February low at 60k, bitcoin climbed all the way up to 81k, before it turned down and hit 60k again. That’s a 38% rally. And the whole thing played out over a period of four months. But now, bitcoin is already down at 60k again. After a measly 14% bounce that lasted only three weeks.

Not a good sign.