BTC/USD: Has Bitcoin Found Long-Term Support?

Huzefa Hamid

Bitcoin (BTC) made news for its meteoric rise and its equally meteoric fall. But lately, outside of the news, Bitcoin is at an interesting technical point on a long-term chart. Let’s look.

BTC/USD

Weekly Bitcoin Price Chart

The BTC/USD currency pair made a key resistance level in December 2017 at $19,666. (I didn’t make up those last digits!) The price pulled back where it went sideways for three years. But when it did break through that level again, it showed huge momentum with historic gains not seen at that time in its history.

Fast forward after its all-time highs near $69,000 in November 2021, Bitcoin has fallen back to the resistance made in December 2017. But this time it is testing the level as a support. In Technical Analysis, this is known as “role reversal” where resistance turns into support. The reason this happens is that the sellers at a previous resistance become buyers when the level is reached again because they missed out on the previous move, thus creating support at the same level.

$19,666 is obviously a key level on the chart, and it’s already become a support level over the last few weeks. Because of the level’s historic significance, there’s a good chance it will hold and stall the fall in value.

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Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.

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