Point & Figure: The Chart That Makes Bitcoin Support Cut And Dry
Is Bitcoin in trouble, potentially on the brink of collapsing to unexpected new lows? That’s the question on all crypto inventor’s minds, as the leading cryptocurrency by market cap tends to lead the bullish charge. However, a somewhat forgotten style of technical analysis could provide the most cut and dry look at the current support levels – “important” support levels that are fully in tact despite the bloodbath to start December. Let’s Get Technical: The Origins Of Point & Figure Charting Before there was TradingView and other computer software-based....
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In the past few days, we advised traders to consider taking profits ~$344. It turns out that the magic number was a few dollars shy of that figure ($338). We also suggested that when the next pullback occurred we could possibly get a test of the long term support line. As I am writing these words, price has touched that support line. For now at least, that support is holding. See the 3-day chart below. As long as we do not get a close below that support line I will remain medium-term bullish. I continue to expect that the market will rise as soon as the price passes through the 2nd arc....
I am faced with a conundrum tonight. You see, the ethxbt 8-hour chart is now sitting on 5th arc support. This is typically very strong support. Of course, in this business one learns to “never say never”. The support could fail. But it would be foolish, imho, to bet against that support before seeing evidence that it is failing. But, if we accept the strong implication of this chart, it means that ethereum is going to strengthen against Bitcoin in the very near future. To be honest, this scenario did not strike me as highly probable before seeing this chart. For the past week or so, I have....
The market drove the price of Bitcoin downwards yesterday, until it touched the $265 line and then started rising until reaching $270 at the time of writing of this article. By drawing a trend line with between the high reached on the 12th of November, 2011 ($432) and the low reached on the 4th of January ($257) and plotting Fibonacci retracements on the below chart, we can conclude the following: If the price fell below $255 which is the support point and the low reached on the 4th of January, the market is likely to drive the price to decline even more to $201, which is the next support....
After testing the $200 critical support point, the price of bitcoin dropped today to around $170, before rising up again to $191 at the time of writing of this article. By drawing a trend line between the high reached on the 3rd of December, 2013 ($1177) and the low reached on the 10th of February, 2014 ($102) and plotting the Fib Speed Resistance Fan on the daily BTC/USD charts, we can see the price bouncing off the 0.61 fan line in last October (the red circle on the above chart) and as of today, the price touched the 0.5 fan line (the blue circle on the above chart), which is considered....
When the December 31, 2021 candle came to a close in Bitcoin, it didn’t just begin a new calendar year – it triggered a sell setup of epic proportions. Here is why the secular bull run in cryptocurrency could come to an end this year, and the first true bear market emerge. Bitcoin Yearly Chart Triggers First Ever Sell Setup You wouldn’t know it based on the recently bearish price action, but Bitcoin has been in an ongoing bull market since the second the genesis block was generated exactly thirteen years ago today. In the span of a normal childhood growing into a teenager, the....