Bitcoin Momentum Falters as Consolidation Pattern Takes Hold

Crypto has enjoyed a comeback in recent weeks, but its momentum has faltered. The price of Bitcoin made a significant bullish breakout to new multi-month highs and it seemed like it might take off to the upside, but now it's following the same pattern as the US stock market - holding up without giving any strong indication that it will go anywhere exciting for investors and traders.

The price made a bearish double top just above $87,000 and then fell, beginning a consolidation pattern between $82,500 and $85,500. The obvious lines in the sand below the recent price action are $82,000 and $80,000. If Bitcoin gets established below either of these levels, bulls will be in trouble.

Adam Lemon, Chief Analyst at DailyForex, is long on Bitcoin as a trend trader and uses a volatility-based stop. He thinks a daily close below $80,000 would be a good signal for anyone to get out of a long position if they are only in it for the short term.