After breaking out of the consolidation zone, bitcoin did retrace back to 8193. This is nothing to worry about...yet. Whether or not the market returned to the consolidation zone is open to debate around where exactly the consolidation zone begins. Readjusting for new price information, it's reasonable to consider the top of the zone at the level the market retraced to, as shown in this chart. This level has been used as prior support and may do so again.
Breaking below this level with any convincingly bearish price and volume action could be meaningful, so watch this level carefully. If the market does break below, I will be waiting to watch how choppy the price action is in this area.
If the market reverses to the upside from here, as it has already begun to do so, there is a lot of upside potential. This consolidation phase followed a violent downtrend. The prolonged nature of the consolidation indicates that the breakout and subsequent trend phase will be a relatively large one in both duration and price excursion. A new uptrend phase could see prices return way into the $9000s or higher.
Breaking below this level with any convincingly bearish price and volume action could be meaningful, so watch this level carefully. If the market does break below, I will be waiting to watch how choppy the price action is in this area.
If the market reverses to the upside from here, as it has already begun to do so, there is a lot of upside potential. This consolidation phase followed a violent downtrend. The prolonged nature of the consolidation indicates that the breakout and subsequent trend phase will be a relatively large one in both duration and price excursion. A new uptrend phase could see prices return way into the $9000s or higher.