The price of bitcoin is trading around a crucial long-term support level this week, with the decline in the cryptocurrency coming into question. The sharp ascent into $20,000 seems like a long time ago, and while everyone seemed to be looking for longs in bitcoin, we have been in this downturn long enough to consider trade in either direction. With the price currently at such an important crossroads, we are expecting to see this market either bottom out, or continue this recent decline, with the $3000 mark widely discussed as a potential market bottom.
The weekly chart highlights the existence of a 76.4% Fibonacci support level, which perfectly matched the low set back in early February. With lower highs being set since the peak in late 2017, we have been exhibiting a descending triangle formation. The breakout from that pattern would come with a rally through $9957, or a significant breach of the $6000 mark. As such, we should expect that whatever happens in the coming days should set us up for the coming weeks of price action.