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Bitcoin - Weekly Timeframe
Bitcoin has Weekly Candle Closed beyond the ~$36127 level (blue) which has seen interesting action in the past.
In early 2021, this blue level was initially broken but then price failed the retest attempt and in the following week flipped this level back into resistance to see price drop back into the ~$31000 level (black) for a retest.
In mid-2021, BTC was rejected from this level for a couple of weeks before price yet again broke beyond it but once again failed to retest this level as support before in the following weeks flipping the blue level back into resistance to see price drop back into the ~$31000 level (black) for a retest.
And now, Bitcoin has broken beyond the blue level by Weekly Closing beyond it but the key going forward is for BTC not to fail its retest attempt.
Because failing this retest could, just like before, precede a Weekly Close below the blue level which could flip this level into new resistance to see price drop back into the black ~$31000 level for a retest attempt.
So the red circled areas showcase how failed retests tend to occur at these levels, despite initially bullish Weekly Closes above blue.
And on the other hand however, the green circled area showcases how a successful retest of blue as support can propel price to the next region of resistance which is the orange level ($43200).
Following from this analysis, everything distils into the following:
- Successful retest here and BTC could rally to ~$43000 over the coming weeks.
- Failed retest here followed by turning blue into resistance could see price drop back into ~$31000 over the coming weeks.