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 charting tools, technical analysis was entirely drawn by hand. Traders would wait for the bell to ring on the day before adding the daily close to their charts.
More than a hundred years before Bitcoin was created, an anonymous writer by the name of “Hoyle” first wrote about a different type of hand-drawn chart in 1898, called the Point & Figure chart. His writings were featured in the book The Game in Wall Street and How to Successfully Play It.
Bitcoin Drops To Undeniable Support Level That Bulls Must Hold
The chart above might look unusual compared to the Japanese candlesticks and bar charts most traders share. Support can be drawn either at 90 degrees or at 45 degrees for an uptrend. Resistance also works similarly at 90 and 45 degrees.
The current column of red bars represents the downward price action, which first touched the blue horizontal support line, pierced the 45 degree uptrend line, but has since bounced and is currently holding above above it.
