Bitcoin hanging out at key Retracement Level

Two major components of my analysis and trading style are:

1. 50% Retracement Levels
2. Candlestick closes

I find it fascinating (and useful) when price reaches a key Retracement level after a big trend and then respect it. Very often these instances yield great trading setups.

Bitcoin seemingly BROKE the Retracement of its trend from the Summer 2021 lows back up to try for a new Bull run. What price actually did on that liquidation was HOLD the Retracement as confirmed by the candlestick closing just back above. So long as traders were not over leveraged into liquidation or had unfortunate stops along the way there was reason for optimism.

Over the last few days Bitcoin has continued to flirt with this level rather than rise from it. In the short term a battle is going on. A solid close back below the level would suggest an attempt to retest the spike low. Holding the Retracement longer would be bullish.