BITCOIN’S BOUNCE HAS COME AT A LIKELY SPOT IN THE 6,000 AREA

This zone has acted as support four times now since first revisiting it early February.  Many eyes are focused here, and many traders may expect a strong rally to follow. That may happen, but we need to be aware that each rally has been happening within the confines of eight month downtrend.  Downtrends, of course, are characterized by lower highs, i.e.,failing rallies.

For the short-term, if this pop fails anywhere near 6,800, the two month pattern could morph into a bearish Head & Shoulders formation.  That’s still a few steps ahead, but it’s something we’ll be watching.