Bitcoin Price Action Faces Critical Test; Will Support Levels Be Held Or Broken?

Today is a big day for Bitcoin in several ways. To begin, it will mark the first time the long-term upper trend line will be tested as support. BTC surpassed this level in the last week, giving hope to the bulls for a long-term trend change. Thus far, BTC has performed even better than expected.

 

However, what goes up must come down, and considering yesterday kicked off the start of BTC’s retracement, today will allow price action to really test the upper trend line. With Rogue* Wave pivots marked, you can see in clear view how recent price action look to synchronize with the previous legs as volatility kicks in.

BTC created the previous leg up over the span of 10 days, peaking at about 8500. This was held only briefly, and as the Rogue* Wave Pattern has shown, began to seek out retracement points. Over the last 3 days, BTC has taken a downhill path quickly by seeking out the first retracement area at 7800. Now below this point, the next area at 7200 is the 1/2 retracement target of the previous leg up. Be sure to watch the candle close*.
Stochastic gives a solid reading now with overbought(>80) levels seeking oversold(<20) at high speed and near-perfect downward movement. Look for a pivot in these lower levels to match with support being made.
Support and Resistance Stand at 7200/7600/8000/8400.
MACD readings also now look to cross mid-term and will seek a new short-term low as support.
***Additional high-value item: Look at the long-term upper trend line that is to be tested today. It perfectly stands at 7600, and a short-term break is likely. However, this must be held for the long-term trend to be bullish.
BTC is currently a No Play.
Futures Traders – Trade the Trend. The short-term trend is currently short.