This week, the price of bitcoin retraced down to a low $407, after failing to break out from under the $422 resistance line. $427, was a spike high that pierced up above $420 level, but, was quickly followed by a sell off. What followed was a retest of low $400s bottom thrice, at $407, $408 and $409 – a triple bottom.
This bottom has held strong this week, forming consecutive higher and higher lows, as price edges closer to another attempt at breaking $420. Price has been tightly squeezed in the last 2 days, right below $420 level, and forced to trade within a narrow $2 sideways range between $420 and $422.
This 1 day chart above, from Bitstamp, highlights the significance of $420 (1), where, as of writing this, price is chipping away at it from the bottom. After breaking below it in January, price went back above it at (2), till $446, but sold off to low $382. The month of March was about regaining lost ground.