Crypto Analysis | Hive Support Epiphany
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Technical Analysis is a bit like Sudoku
When you look at the charts for a long time you start seeing new things that should have been obvious before! As such, I just spotted a strong support that somehow escaped my attention until now. Since Hive looked like it was being rejected (again!) at the weekly trend line, I was feeling a bit bearish about how low Hive could fall. But Hive's price has stabilized somewhat and could actually find support at the 29-30 cents area that is needed for today's weekly close. If so, there would still be a chance for a bigger breakout to the 30s, 40s and beyond. But let's have a look at the chart first:
You can see the old "support" that I used until now. It was a very weak support since it does not have multiple points of contact with price. The "new" support however, looks very different: we have 5 points of contact which makes this a very strong support on the weekly time frame. This is overall rather exciting since it could suggest that these really are the bear market lows. The strong weekly resistance seen in purple here has so far held price below for over a year. And as you can see this is going to be a make or break moment: Either price overcomes this resistance and breaks out big, or we fall under this support and probably crash to the 15 cents area (indicated by the thin purple line at the bottom).
We can also do the same thing for the resistance. We can draw the long "horizontal" resistance in the chart giving us a good range of where price has been tested. If we do break out to the upside I would expect price to revisit the upper boundary of that line which would be at around 55 cents.
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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There are higher lows and lower highs in other crypto charts as well. Will this formation end with a breakout or a breakdown? We will see next month. The breakout chance is higher.
What changed your opinion? Last time you felt that a rejection was more likely?