Bitcoin Holds $77K Support After Dip: More Consolidation Or Breakout Ahead?

With the market still nervously processing Fed Chair Warsh’s rather hawkish Jackson Hole speech on Friday, the Bitcoin price moved lower. Currently rebounding to $78K, is the $BTC price in for more consolidation as the market continues to digest its huge move up from the bottom?

$BTC price funnels into the end of the triangle - up or down?

Source: TradingView

The 4-hour chart shows that huge move up from $63K to $79,500 in the space of only five days. That was simply a monster move, and therefore the $BTC price needed to follow a sideways trajectory in order for the market to digest such a rally. 

So how long would the price be expected to go sideways before the next decisive move? As a rule of thumb, however high the rally goes, the sideways consolidation would go a similar distance, so if we took the height of the rally from the bottom and then laid that sideways, we would probably be at or near the end of this current period of consolidation. Obviously this is only a rough estimation, and where the price goes from here will either bear this thesis out or not.

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