Analysis of Bitcoin’s Potential Resistance Levels: Is It $115K or $223K?

The examination of both linear and log-scaled price charts unveils potential resistance points for Bitcoin (BTC).

Key Insights:

• A trendline that links the highs from 2017 and 2021 points to a resistance level around $115,300 when viewed on a linear scale.
• Conversely, a log-scaled analysis suggests a significantly more robust resistance at approximately $223,000, which is in line with Bitcoin’s historical growth trajectory.

Daily Market Overview

The Bitcoin market appears largely positive, with prices remaining above $100,000 for almost two months, excluding just one day. Analysts predict resistance could fall between $140,000 to over $200,000.

Identifying BTC’s bull market resistance.

Description: Identifying BTC’s bull market resistance. (ianproc64/Pixabay)

Using trendlines that link significant highs and lows on price charts provides visual indicators about trading momentum, allowing traders to spot support and resistance boundaries.

Connecting the $20,000 peak from 2017 to the nearly $70,000 high of 2021, the trendline indicates resistance at about $115,300, according to TradingView data.

Additional Resistance Insights

The initial chart utilized is linear-scaled, appropriate for observing short-term price shifts. However, relying on the log-scaled chart results in more credible resistance levels, reflecting Bitcoin’s exponential growth pattern during bull markets.

By connecting the highs from both the 2017 and 2021 periods on a log-scaled chart, we can see that resistance aligns closely with about $223,000, highlighting significant potential price movements.

BTC’s log-scaled monthly chart.

Description: BTC’s log-scaled monthly chart. (CoinDesk/TradingView)

This log-scaled trendline provides higher reliability as it adjusts for large percentage changes, making resistance levels more relevant and actionable for traders.