As we highlighted in the previous post, BTC had to choose a direction because of the Squeeze that has occurred on the Chart and sure enough, it has made a decision, probably the least favorable one of the two.
When BTC broke below the Trend Line, it has turned from being Support to Resistance. We can clearly see how the Price tried to climb back above it but got Rejected immediately and this Rejection was soon followed by a sharp decline.
Believe it or not, (i know, it looks scary) this was a healthy move. The Flag formation is still intact and the Price has got closer to the Zone Of Interest. A lot of Professional Traders are watching this Zone because we have got the 0.618 Fib retracement level there and it also lines up with a potential Support Zone (8350-8450)
However, this does not mean that the Price is going to turn around immediately once it has interacted with this Zone, but it is definitely an area where we should look for some good Price action and for a Reversal Pattern to occur.
Are you going to keep an eye on this level? Coz we will for sure!
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