Bitcoin Tested Resistance, Next Test Remaining Or Breakdown?

Hello Traders Investors And Community, hopefully, everybody of you is doing well in today's volatile market environment and welcome to this analysis about bitcoins recent price action and what we can expect the next hours and days. Bitcoin mad a very interesting move which I described already in past analysis, the important resistance-line which is dividing the neutral and the bullish zone was touched and tested by bitcoins price action. I highly recommend that you look into this analysis to have a full-depth-overview. I made the analysis one and a half month ago and finally we tested the strong resistance-line:


The pull-back which occurred recently in bitcoin was normal for the high volatility and heavy uptrend we have seen before, now bitcoin is in an important zone we it has to decide which way we are moving the next time. As you see in my chart we have local support in the 8400 to 8650 range which is a significant range to hold for bitcoin it is also building the current bullish confluence zone, when we break this zone to the downside I do not see much of a support expect the next support-zone at the 7830 level you can see in my chart.

At the moment a possible second test of the strong-resistance level can be in the schedule as you see it in my chart but for the moment I do not see an immediate break of the falling resistance-zone because it was and remains a strong line. In this case, we can expect a bounce back from there back to the actual confluence-zone. Overall we can say that bitcoin is currently building a consolidation-range here where it will decide in which direction we are moving at the end.

What is a good sign currently is that both cases can be traded properly, the break and confirmation of the falling resistance can be traded long when it confirmed rightly. Otherwise, the breakdown of the downside can be traded on the SHORT-side. Either case will be exciting to see. Remember that with a break of the falling red-trend-line which is not a high possibility right now we are trading in the bullish zone and this can indicate a possible bullish continuation.

Thanks you everybody, have a good weekend and feel free to support for more insight. ;)
Trading effectively is about assessing probabilities, not certainties.
FAREWELL

Information provided is only educational and should not be used to take action in the markets.