In the end it didn’t take long for bitcoin to drop below that pink trendline marking the bottom of large bullish channel. To me its looking increasingly likely that price volatility will remain subdued for a while yet, which is an idea I also portrayed in my last post.
Heres a look at Bitstamp with 1 day candles going back to the April low.
As mentioned, bitcoin has dropped below my lower pink trendline, which is now drawn as a dashed line.
I have now added a new inside pitchfork joining the most recent significant low with the last high. Perhaps this gives a new slope for my trendlines? In blue I have also marked wedge pattern which currently constrains price. Whether it breaks up or down I will be looking to see if support or resistance manifests on the trendlines of that fork. I have a feeling there will be quite strong support around the $600 level if price starts dropping.
Although the fork I’ve added slopes upwards keep in mind its just an early idea sketched in after failure of the pink channel, longer term I still think a grind downwards might be on the cards.