Bitcoin's Potential Bull Market Resistance: $115K or $223K?

This is simply a regular method investigation by CoinDesk expert and Chartered Market Technician Omkar Godbole.

The statement successful the bitcoin BTC marketplace remains bullish adjacent though the terms has held supra $100,000 each time barroom 1 for 2 months, with analysts' projections for absorption levels ranging from $140,000 to implicit $200,000.

One mode to place specified levels is to usage trendlines, which are terms illustration lines connecting large highs and lows. They supply ocular cues astir momentum and direction, helping traders place enactment and absorption levels.

Connecting the 2017 bull-market precocious of astir $20,000 and the 2021 precocious of astir $70,000 and extending the enactment guardant tin assistance item the level wherever selling unit mightiness emerge.

As of the clip of writing, this trendline indicates absorption astatine astir $115,300, according to the information root TradingView.

The aforesaid trendline capped upside successful December and January, paving the mode for a correction that saw prices driblet to a debased of $75,000 successful April.

Log-scaled absorption astatine $220K

That said, the supra illustration is simply a linear-scaled oregon arithmetic-scaled monthly chart. It shows the implicit terms changes, a diagnostic that makes it suitable for analyzing short-term trends.

The imaginable absorption price, however, whitethorn beryllium little reliable than that derived from the long-scaled chart, which compresses important percent moves, making trendlines and absorption levels much precise and much meaningful.

Connecting the 2017 and 2021 highs connected the log-scaled monthly illustration aligns the absorption astatine astir $223,000, alternatively than $115,000. The log-scaled trendline absorption is apt much accordant with the exponential maturation signifier of bitcoin's past bull markets.