Journey of a trendline
How did I draw this trendline? I went back to previous cycle and tried to find valid trendlines using 4 hour timeframe. I then used the setting where you can extend trendline to see how it performs over time (past or future). This was the only one I could find that is relevant to current price action. On smaller timeframe, it showed bulls were getting weaker and crash was coming (the head and right shoulder; declining highs). When you extend this trendline and switch to higher timeframe, you can see it has been respected quite well ever since. When BTC broke out after months of accumulation, it was rejected at this trendline and needed another attempt to go higher. After breaking above it, BTC went on to make a new all-time high. When it crashed again, the same trendline that was previously acting as a resistance was now acting as a solid support. This support was broken last month and we've already tested it as a resistance once. Would you consider this a valid trendline?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.