Blocksmith Says: Bitcoin Breaks Support; All Hell Breaks Loose

12 May 2022

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.

Blockhead Team
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