Bitcoin and other cryptocurrencies have tended to move higher during and following the biggest Bitcoin event of the year, Consensus. In trading terms that's a sign of "bad action" and a bearish trading signal.

Bitcoin In A Downtrend

We recently pointed out that Bitcoin as the proxy for cryptocurrencies is currently in a downtrend. We'd guess that many traders were hoping for a Consensus bounce but didn't get it.

Consensus has passed with no up move. Not good.

Here's Bitcoin, Bad Action

As a trader, unless you're bearish you don't like a downtrend.

What's worse is when you expect a good reaction and don't get it that's a negative trading signal.

It's called "bad action."

Simply, when you hope for good and get bad it's a sign that selling is overpowering the good news.

It's a bearish sign for Bitcoin after a key catalyst event passes.

Let's Zoom Out

(Click on image to enlarge)

Again, not getting a positive reaction from a bullish event should make traders concerned.

There's some support at 8000 but there's no bigger support until 6500.

That move would hurt and spook traders that we can break 6500 to continue this medium-term downtrend that started in December.

Conclusion

The trend matters and for now, it's still pointing lower.