Bitcoin's Previous Resistance now Acting as Support

Last month’s Bitcoin bear market witnessed an approximate peak-to-trough drawdown of 38%. The chart pattern resembles a bungee jump, if the jumper started getting closer to the ground after feeble bounces. Plunge, bounce, then deeper plunge. If bear markets are anything at all, it’s that they are never orderly.

On Sunday, however, the pace of selling increased and then was promptly reversed. Resistance from May is now Support, and this pattern will likely lead to higher prices in the weeks ahead.