Update: BTC Indicator finds support & resis. levels the easy way
One of my followers recommended I update my post from January where I describe the Bitcoin Log Growth Curves that finds support and resistance levels for Bitcoin. (These curves only work for Bitcoin).
I added green support arrows when the fib levels acted as support, and red resistance arrows when the fib levels acted as resistance. If you scroll the chart to previous years you will see price will often use these lines for support & resistance.
If you take a look at the current price you will see bottom most fib line (currently at 9k) now acts as support and the 2nd fib line (currently at 10.5k) is resistance. We are sandwiched between these two layers, much like the ice-cream in an ice-cream sandwich. We don't know if we are going break through 10.5k or come crashing down through 9k. These are the 2 price levels that I am watching for a break down or a break out.
I like to study charts and look for patterns in some of the indicators. There was something very interesting in my January chart that I was hoping someone would spot concerning these log growth curves. But they didn't spot it. I added a purple thumbs down icon at these events. Do you see it now? (Has your jaw dropped?)
When the price drops down through one of these fib levels, it usually results in a huge price drop of at least $1000. Even if the price is above a fib level for only a week or two, when it drops below the fib level many times it falls hard. That's why I feel the 9k price is the one to watch.
My last chart got only 3 likes. (It's not like I'm charging you guys money. LOL)
Let's hope this chart gets more than that otherwise I may take a long vacation.
I added green support arrows when the fib levels acted as support, and red resistance arrows when the fib levels acted as resistance. If you scroll the chart to previous years you will see price will often use these lines for support & resistance.
If you take a look at the current price you will see bottom most fib line (currently at 9k) now acts as support and the 2nd fib line (currently at 10.5k) is resistance. We are sandwiched between these two layers, much like the ice-cream in an ice-cream sandwich. We don't know if we are going break through 10.5k or come crashing down through 9k. These are the 2 price levels that I am watching for a break down or a break out.
I like to study charts and look for patterns in some of the indicators. There was something very interesting in my January chart that I was hoping someone would spot concerning these log growth curves. But they didn't spot it. I added a purple thumbs down icon at these events. Do you see it now? (Has your jaw dropped?)
When the price drops down through one of these fib levels, it usually results in a huge price drop of at least $1000. Even if the price is above a fib level for only a week or two, when it drops below the fib level many times it falls hard. That's why I feel the 9k price is the one to watch.
My last chart got only 3 likes. (It's not like I'm charging you guys money. LOL)
Let's hope this chart gets more than that otherwise I may take a long vacation.
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