Bitcoin appeared to have made a very bullish move last week when it finally broke above $45,500 but since then, it’s all been downhill.

Sentiment in the broader markets has dipped in recent days and bitcoin has suffered as a result. Even prior to this, it failed to capitalise on the initial breakout which may have been a sign of what was to come.

While the trend in the longer term may still be positive, the current environment isn’t making life easy. A break of the ascending trend line raises the question of how big a correction bitcoin is facing. The resistance it faced from the same trend line supported that.

It’s already seeing support around the 50 fib level on the 4-hour chart which coincides roughly with the top of the 55/89-day SMA band, while the 61.8 fib roughly coincides with the bottom of the band.

This is the key zone that will tell us if this is a correction of the two-week rally since mid-March or something more.