Bitcoin – Quantifying Support & Resistance

The chart below is an attempt to quantify exactly where Bitcoin’s major support and resistance levels are.

To show this, we broke Bitcoin’s price down into $500 price ranges and then overlayed the number of days in total Bitcoin has spent trading in each of these ranges.

Conclusions:

* At the time of writing, Bitcoin is trading around 11300
– A few more days at this level could turn 10000 -12000 into a significant support level

* Below the current level, the next  near term support range is 7000 – 7500 range
– Bitcoin spent a total of 8 days trading around this range

* The largest near term resistance line is 13500 – 14000 where Bitcoin also spent 8 days
– Resistance thins out pretty quickly > 15500
– Meaning a break above 15500 could see a retest of ATH’s relatively quickly

* Round numbers mean little to Bitcoin
– Normally you’d expect significant resistance at most round numbers
– Bitcoin shows gaps at 5000, 9000, 10000, 12000 and 18000.  This is likely due to volume
being fragmented across multiple exchanges and currencies (fiat + digital), reducing
the importance of round numbers.

Support Resistance.jpg

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