Bitcoin continues to underperform
Bitcoin (BTCUSD) has once again fallen from its recent highs, indicating a worrying tendency to fall back into what seems to be something of a pattern – a strong rally with a subsequent loss of momentum, followed by weakness. It is interesting to note that in every rally since December 19th the high point for each successive rally never quite makes it as high as the previous one. We saw this declining top on January 5th and 29th, February 21st, March 5th (only just), and most recently on May 4th. We’d expect to see a trickle back to strong support around the $6,000 level before the next rally continues, and we’d like to see this pattern of declining highs broken if longer-term confidence is to be maintained.