WHY the zone BTC has entered is important!
The 30K zone has been a significant support in January and summer of 2021, marked with green circles.
Until the Bear Flag breakdown in May 2022, highlighted with a red circle.
Fast forward a year and BTC has approached the area once again.
From a higher timeframe it may seem as a Break & Retest of previous support as resistance (which it may well be).
BUT
We have a little acceptance in the Bear Flag zone which we previously broke down from, marked with black dotted lines.
And at this current point we may we witnessing a Break & Retest of the previous resistance (also the lower line from Bear Flag), just at around 28,5K.
IF
This holds true and 28,5K level is being held, I think there is more chance of BTC price increasing.
HOWEVER
If 28,5K doesn't hold and we start drifting below it, BTC'd primary direction then should be to the downside.
Until the Bear Flag breakdown in May 2022, highlighted with a red circle.
Fast forward a year and BTC has approached the area once again.
From a higher timeframe it may seem as a Break & Retest of previous support as resistance (which it may well be).
BUT
We have a little acceptance in the Bear Flag zone which we previously broke down from, marked with black dotted lines.
And at this current point we may we witnessing a Break & Retest of the previous resistance (also the lower line from Bear Flag), just at around 28,5K.
IF
This holds true and 28,5K level is being held, I think there is more chance of BTC price increasing.
HOWEVER
If 28,5K doesn't hold and we start drifting below it, BTC'd primary direction then should be to the downside.
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