About 72 days ago, Bitcoin began trending down to make one of the largest corrections in it's volatile history (-70%)
We've been on an uptrend for most of the last 21 days, and Bitcoin has almost broken out of the downtrend 3 times. Traders have been watching the downtrend on both the log scale and linear (arithmetic) scale. Bitcoin has been respecting the linear scale with great accuracy and appears to be preparing for a breakout in the coming days/weeks.
--With a linear price scale each unit change on the chart is equal. Regardess of how high the price goes, the scale of the chart stays the same. For example the scale might move in $100 increments, $10,000, $10,100, etc. For trading shorter time frames this isn't really an issue.
--With a logarithmic scale (log) it's plotted so that the prices in the scale are not positioned at a fixed number, like $100, and instead the chart scale increases at an equal percentage between prices. This is a must for any long term analysis, and most traders stick exclusively to log scale.
As you can see in the chart below, we're using the Linear scale in this example to chart the downtrend (shorter time frame) and BTC is respecting it beautifully:
For the 1 year uptrend we're watching however, we've used the log scale. For that reason, since this is a linear chart, the orange line will appear to be out of position, but when toggling log scale this is the support of the 1 year uptrend in our opinion.
This means, BTC is farily safe above the orange line and turns bullish when it breaks the downtrend (green line). Breaking below the orange uptrend line (<~$8600) would be very bearish for BTC and ALT coins and could lead to extreme new lows.
