Bitcoin Price Compression Building Pressure

Bitcoin price keeps consolidating in a narrowing price range. Although there is a breakout building pressure in the chart, there is not yet any technical evidence of the eventual direction.

The rounded price wave formed over the past two days has begun breaking down and we watch to see if the market will sell price back into the blue support zone.

If price is held above the 200MA (red, near $655 Bitstamp) then there is the opportunity that this wave can continue higher.

Below the 200MA there is an additional potential bounce level at $640, at which a base wave may complete and then advance into a larger rally. Of course, losing that $640 level could be seen as a bearish signal and then the low $600s and a potentially larger decline may develop.