Technical analysis of price trends is a topic ever electrifying the world of crypto investment, with dynamic debate on social media and beyond. While there are no guarantees, there are fundamental methods for looking at data which can provide valuable insights, such as analysis of price support lines and resistance, as well as proposed approaches for making the most of bear markets such as the Mayer multiple.
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Support and Resistance
“The voyage of the best ship is a zigzag line of a hundred tacks. See the line from a sufficient distance, and it straightens itself to the average tendency.” So wrote the American essayist and transcendentalist philosopher Ralph Waldo Emerson in 1841 in his seminal essay Self Reliance. While Emerson had no way of knowing about a future full of heated crypto Twitter debates, his point here nonetheless bears relevance not only for one’s personal life journey, but in the context of support lines for bitcoin as well.
What are known as “support” lines in technical analysis of price trends are levels at which dips in price are said to test a low level and return upward, not wanting to sink back below said level. While there’s endless debate and speculation on what are thought to be new supports or resistance (a level that prices tend to hit and then recede from), a broader, macro look at historical data can be enlightening.
Bitcoin's parabolic uptrend which started in January 2015 is still intact. Now nearly touching support again, for the first time since March 2019. #buythedip pic.twitter.com/ohMOPEEjiR
— Tuur Demeester (@TuurDemeester) November 22, 2019
Examining BTC’s historical trend since
