Bitcoin Reached The Support Zone - What's Next

The price could not break 10000.00 resistance level and we saw a downward movement to a possible support zone. It can give us new reversal signals with further upward wave. This support zone is formed by 0.50 and 0.618 Fib levels and it also includes 8000.00 support level and SMA50 from the daily time frame. We can consider this zone as a strong one and we should expect for a price reversal with further upward movement to 9000.00 and 10000.00 resistance levels. The bullish divergence gives a trend reversal signal. If the price bounces from the support zone and breaks the downtrend line, we'll get the trend reversal confirmation. It will give us a new buy opportunity as well. If the price drops below the support zone, the uptrend line we'll be another place providing possible reversal signals and buy opportunities.

Alternative variant: the price breaks the support zone and the uptrend line. It will be a strong confirmation for further downward movement. The price will be able to reach the previous market low at 6500.00 level one more time. The price action at 6500.00 level will show further market movements for middle and long terms. This variant seems less realistic but we must be ready to see any possible price movements.

Comment:

The market moves sideway. We don't have additional signals confirming further price movement. The best variant for trading now - stay away from the market.

Comment:

The market forms a falling wedge and a flag. For short term price movement we can follow the flag as a continuation pattern. For middle term we can use the falling wedge as a reversal pattern.

Comment:

The price stays above 8000.00 support level. This support is strong and a bullish divergence at this level can tell us about possible trend reversal.