Finally a move!

But in the wrong direction.

After attempting several times to solidly break above the 4000 threshold (with resistance around 4050), bitcoin price finally made a step back.

People, including myself, were expecting a solid move pass the 4200 level this time, but that did not happen.

Keeping the bitcoin price very close to 4k and making those fragile multiple attempts to conquer the resistance only strengthened it further.

It also didn't make either sides happy. Not the bears, not the bulls. Just a stalemate that was supposed to break at some point.

I know enough about market psychology, to understand, even without TA, that multiple unsuccessful attempts to break a resistance will result in a move in the opposite direction, because the bulls finally give up on the idea of breaking the resistance, and bears will see the opportunity to move the prices lower.

If the prices plummet uncontrolled and don't quickly recover, there's a high chance those resistances won't be tested for a while.

But if there is a controlled dip, like I think it was yesterday with bitcoin, we might be talking about a different deal. It's a way to release some downward pressure that is building with every failed attempt to go over the resistance and to allow for some volatility, but not too much.

Overall, I think what happened is a good thing. If we can't break it, at least we don't look like losers and wait until there's enough tension built up to bring the price down in panic.