The price is currently testing the support level on a logarithmic scale with higher time frame. Since, 2015 BTC has protected the support above that region.
According to prominent chart analyst, Peter Brand, the trend-line will eventually be the deciding factor before for another bull run. In the bullish and bearish picture painted by the expert in one scenario it breaks below the trend to $5300.
However, in the other one, it protects the bottom of the channel to initiate another parabolic run at the end of the bearish trend.
During the extreme bear market of December 2018, it tested support from that trend-line for about 105 days before making a move to the upside. A classic example of popular saying,
‘Don’t short support or long resistance’
Currently, the price is back to testing the bottom of the line again.
The area between the bearish channel and the trend-line is squeezing for an intersection with the upper bounds by end of January 2020.
Hence, it is unlikely that the support from the trend-line will last for than three weeks. A break-out within this time is most likely.
Nevertheless, Bitcoin [BTC] price continues to be range bound in the $6700-$7800 region. The buyers and sellers are eagerly waiting at break of the resistances and support.
Do you think that Bitcoin [BTC] will be able to hold its multi-year support levels? Please share your views with is.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com