Bitcoin's Polarity

September 7, 2021

One of the first lessons you learn in technical analysis kindergarten is the principle of polarity.

That is, former support turns into resistance, and vice versa.

The thinking here is that when buyers absorb all the overhead supply looming at resistance, the market has nowhere to go but up. When the market breaks out and retests that former resistance, it turns into support on the way down.

This language of supply and demand is true everywhere, but particularly so in cryptocurrencies, where there are no earnings, dividends, and discounted cash flow models to dilute the necessity of price.

So, with this all said, is this a textbook example of polarity taking place in Bitcoin?

Article Sales Message

All Star Charts Crypto Members Receive

Our professional research delivered to your inbox
High conviction trade ideas to make money
Full coverage of entry and exit signals across the crypto landscape, including major coins, altcoins, and other tokens
Video conferences every week
Alerts to cryptocurrencies before they become mainstream
Custom indices, correlation, trend strength and relationship analysis
Access to Rangefinder – our proprietary app for tracking trade ideas in real time (annual members only)

You need to have a subscription to access this content in full.

Filed Under:

Crypto,

Crypto Blog

Bitcoin's Polarity

You need to have a subscription to access this content in full.

Share Article