Market context:
Bitcoin recently broke through a downward trend line, causing a significant price increase. This breakout indicated a change in market sentiment, with buyers gaining control of the previous downward trend.
Technical observations:
The price is currently undergoing a correction and is approaching a potential retest of the recently established horizontal support. This level is key as it can serve as an important indicator for determining the further direction of Bitcoin price movement.
Possible outcomes:
If Bitcoin successfully tests and holds above this horizontal support, it could confirm the start of a bullish trend. On the other hand, if the price fails to hold at this level, it could indicate a potential deeper correction, leading to further declines.
Conclusion:
A retest of horizontal support will be key in confirming whether a new bullish trend has been established following the recent breakout or whether the market will face further downward pressure. Traders should closely monitor price action around this level to assess further developments in the market.
Team 🔍Crypto Scouts