Pay attention to this Bitcoin Congestion Zone, it’s old!
Congestion zone is when the price is sideways for a while in a price range. In the case of Bitcoin, this zone takes place within a support and resistance range of January/21.
When this zone bursts and breaks upward, we call the congestion zone an accumulation zone. When it breaks down, it was a distribution zone. What zone are we in now?
Note that in January, congestion was confirmed in accumulation and the trend exploded upwards reaching almost $65k.
Now the congestion zone repeats, coming after a downward breakout and lasting more than 1 month. The counterpoint of the first zone makes us think that, this time, it should pop down and confirm a distribution. But that’s something that can’t be hit the hammer. More technical analysts would say that the chance of breaking down is greater, but there is still a setback.
We can also note that the support and resistance points are the same as in January, that is, the same ZONE.
If the price comes to test again the support zone between $31k-29k, the chances of breaking down to get $23-20k are greatly increased. it’s like an insistence on breaking up.
Soft water on hard stone, so much beats until it pierces.
However, if you make a bigger bottom now coming back up, then we might see a retest of the resistance zone and we might still have an accumulation. The biggest chances are down, but it doesn’t hurt to believe.