Can chart support or resistance lines stop bitcoin on his way?

The crypto bull markets are extremely strong. Very often no resistance can stand in their way. Take a look at the picture below how BTC pulverized supposed strong resistances in April, May and June 2019 and in August 2020. In both May 2020 and August 2020, many thought the price would bounce off the resistance and droped sharply. It turned out completely different, as you can see. Just two examples are shown in the picture. The red lines are resistances, the smooth breakouts you can see in the green circles. There are countless such examples in BTC history. Even the ATHs did not hold up as resistances, but were virtually destroyed. A single ATH has held so far. That was in June 2017.

 

Classical technical analysis thus seems to be insufficient for cryptos to estimate probabilities for chart development. But if so, why is it? Well, in the crypto market the whales have an extreme influence on the price development. If a whale decides to buy, then the price increases depending on its purchase volume and not on chart resistances. That's what makes the crypto market something that has never happened before.

 

For these reasons, it is not recommended to trade cryptos short-term based on classical technical analysis. So no short-term Trades in the crypto market.

In the long run, however, there are patterns that can be used to orient oneself. One such rule is: Each cycle ends with a new ATH. A second pattern: Each ATH is several times as high as the last ATH. There is no guarantee that it will happen again. But due to the proven repeatability, there is a likelihood of it. Thus, a long-term investment is the most appropriate.

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