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Blocksmith Says: Bitcoin Breaks Support; All Hell Breaks Loose

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Oh dear. Bitcoin has just broken its key support line that dates back to January 2021. Worse still, the price path is definitely down in the long term. I’m noticing a downswing phase of an 80-week cycle, which isn’t due to trough until late-summer/mid-autumn.

The shorter 40-week cycle seems to have peaked towards the end of March. A component 20-week cycle trough is due, which should lead to a countertrend rally of sorts, but the key support zone between US$30,000 and US$32,000 that has just been broken should now be looked as potential resistance.

Besides the 20-week cycle there will be lesser cycle troughs forcing rally bursts, but I’m expecting that these will be flattened quickly and price will resume lower for now.