What Bitcoin’s Chart Says About Its Price

Here we go again. Bitcoin has hit what chartists call a “support line.”

Here is the chart:

“Support” is meant to be a psychological level created by people watching for bottoms in markets. It is meant to be harder for a financial instrument to break down through a previous bottom, than to bounce up from it, so ‘support’ is a potential rallying point.

[Ed note: Investing in crypto coins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

The idea is that support and its brother indicator “resistance” become self-fulfilling prophesies. People trade when they see support and resistance, and thereby turn these points into “support” and “resistance.”

I think there is another reason, a line of support or resistance represents a natural equilibrium point that without interference from other factors is “the…