RE: Bitcoin $17,000 Target Update & SegWit2x Returns

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Bitcoin $17,000 Target Update & SegWit2x Returns

in bitcoin •  7 years ago 

Hi, thanks for the video. Can you please explain what actually provides the support on a certain value? you mentioned that the support is currently at 13.5K USD, but what should actually happen in the economy for the support figure to rise? I would really much appreciate the simplest possible explanation. thanks

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  ·  7 years ago (edited)

Let me illustrate what @cryptoinvestor just said, there's the 13500 level below and the 16000 level above, and there's the trading channel, a general upward trend (see mint lines) - since the fear-and-loathing pre-Christmas scenario is over, we've been hovering around the lower border of the old trading channel, and now we're trying to bust through the 16k and then the upper border, which is a double resistance in this case - see how it literally CRAWLS there ?
Wewill eventually crack it... I luckily decided to exchange half my bitcoin for ripple before I went shopping today... whoa... excuse me, that was lucky, just saw ripple had gone straight up and logged into kraken to sell, as it will be dropping a bit now... so yeah, let's see if we can finally break that 16 k bitcoin level for good later today and head towards 21k or so, which I expect.
Ripple looks as if it's going up even more but I never take a risk that I can avoid ;)

In the most simple terms, the more times an asset closes or hovers around a certain price, the more critical that price level becomes. When price later exceeds that level, then it provides support. If price is later below that level, then it provides resistance. So given Bitcoin traded around $13.75k or so for a while, now that level acts as support (meaning if price comes down, people will be tempted to buy at that level).