RE: [ Bitcoin ] Nice Bull run, but then the pull back… again!

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[ Bitcoin ] Nice Bull run, but then the pull back… again!

in bitcoin •  7 years ago 

Can you elaborate a bit on this statement?: "This is not the first time this support had to hold and every time we get to this support it gets weaker and the chances of falling further increases a lot."

Why is it that, the more a resistance gets tested, it gets weaker? If a support level can hold multiple times, isn't that a sign of strength and shouldn't it by result decrease the chances of BTC falling further?

Thanks in advance :)

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Investor confidence goes down when resistance levels continue to hold. Remember that a good indicator of bullish trend is achieving higher highs. In contrast, when support levels hold, it's stops prices from achieving lower lows. Thus fortifying the support and creating a virtual bottom or floor for prices

People that bought at the previous ''bottom'' sees the bottom come again and fear that they were wrong about the ''bottom'' and think it will go lower again will sell with the hope to get it at lower price later. That is what I think, I could be wrong @tuwore