Bluetooth module(HC05) works with Arduino Uno but not with breadboard (ATmega328)
If the LED is blinking, the device is waiting to pair with another Bluetooth transceiver (your phone). Once paired, the LED will stay lit. The factory-set pairing code is usually 1234. I can't tell from the photograph how the HC-05 Rx &amp; Tx are wired to your ATmega328, but note that it must be cross-connected; that is Rx -> Tx and Tx -> Rx.