Has Bitcoin Price Found Support on a Decade-Long Trendline?
After a volatile first half, Bitcoin price action has been grinding sideways, trying to find some form of reliable support. While there has yet to be a clear sign of a reversal, the top cryptocurrency by market capitalization may have finally found support on a ten-year trend line.
Complicated technical analysis or this simple trendline trick?
Technical analysis is the study of chart patterns, trading indicators, Japanese candlesticks and other data points in an attempt to predict future price action. The very foundation of most technical drawings and chart patterns begins with a simple trend line.
And while it’s not uncommon to see analysts with a kitchen sink’s worth of technical tools turned on, sometimes less is more when it comes to getting a good read on the market.
Using just one trendline, it’s easy to see why the Bitcoin price has finally found support. With nothing more than the trend line to go by, buying low and selling high has historically produced miraculous results.
Will this nearly ten year long trend line hold? | Source: BTCUSD on TradingView.com
Has Bitcoin Price Finally Found Support on a Decade-Long Trendline?
Bitcoin price first broke the trendline in April 2013, just as Mt. Gox took its exchange offline to give the market time to “cool down.” From there, each subsequent bear market in Bitcoin regressed to the same trend line drawn in red.
The trend line was touched in early 2015, and again in 2016 before the legendary 2017 Bitcoin bull run. Although the 2018 bear market found support before ever reaching the trendline, the March 2020 Black Thursday collapse took the Bitcoin price exactly to the same trendline that still holds today.
Fast forward to June 2022 and BTC again reached this trend line. July was once again flat, but held strong for the second month in a row. So far, August hasn’t made an attempt to try again, and after two failed attempts to break down in a row, it may be time for bulls to rally.
Previous rallies from the trendline have resulted in 2200% ROI, 9700% ROI and 1500% ROI respectively. Losing it could be disastrous for crypto, so it’s worth paying attention to, as simple as it may seem to the naked eye. Will this decade long trend line produce a rally or will it finally be lost?
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Featured image from iStockPhoto, Charts from TradingView.com
