Bitcoin’s Potential Bull Market Resistance Level: $115,000 or $223,000?
According to daily technical analysis by CoinDesk analyst and chartered market technician Omkar Godbole, the Bitcoin market remains bullish, even though the price has been above $100,000 every day for the past two months.
Experts have made various estimates for resistance levels that could go from $140,000 to even above $200,000.
Technical charts use trend lines to identify resistance levels, which connect major highs and lows and provide visual cues about the market’s trend and momentum.
The line connecting the 2017 bull market peak of around $20,000 and the 2021 peak of around $70,000 is used to see when selling pressure may emerge.
This trend line is currently at around $115,300. indicates resistance, as shown by data from TradingView.
The same trendline continued to hold prices back in December and January, after which prices fell to a low of $75,000 in April.
However, this chart is based on a linear or arithmetic scale that only shows significant price changes and is generally considered suitable for analyzing short-term trends.
The potential resistance level may be less reliable than a chart that is based on a log scale, as the log scale compresses large percentage changes, making trend lines and resistance levels more accurate and meaningful.
On a log scale monthly chart, connecting the 2017 and 2021 highs creates resistance at around $223,000, which is more consistent with the pattern of rapid growth of Bitcoin’s previous bull markets. ....
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