Madrid

Major trend support test

Long
COINBASE:BTCUSD   Bitcoin / U.S. Dollar
The previous analysis spotted a consolidation triangle. This one didn't gain enough momentum to break the upside and it hit hard with the upper resistance triangle, both from the short term trend and the long term trend. This made this market to overreact and dump massively until it reached the lower trend support. There is a bounce here that pushed the closing level inside the main consolidation triangle.
At this point it can retest the main support level and if this holds an attempt to reach the O.5 Fib retracement is feasible.
There have been periods when BTC is positively correlated with the market, and this is the case. The massive selloff in the stock market spooked the BTC market as well. I expect a recovery rally in the stock market, so as long as the correlation persists here too, there will be a recovery rally that will keep BTC inside the major consolidation triangle.
An important note, all indicators are pointing south, basically momentum, bollinger bands , and minor trend, except that of the main trend. I will go with it as long as it reads green.