Bitcoin could go one of two ways based on log trendlines

15 Feb 2014

I have plotted a number of logarithmic support and resistance levels. The light blue log line on the bottom actually traces all the way back to the inception of bitcoin so it the most well established trendline to follow. I have observed that crashes and bear markets tend to bounce off of an intersection of horizontal and logarithmic support levels. Two such bounces have occurred on this chart and are noted with solid yellow stars. At this point it is possible for bitcoin to go one of two ways: either it has bottomed out already and continues to find support against the green (less established) logarithmic trendline, or this support fails and bitcoin goes down to find support against the blue trendline. If it falls then support is likely to be found at the intersection of the logarithmic and horizontal blue trendlines. I have plotted likely price action based on each possibility, white being the former case and yellow being the latter case.