The Chart That Makes Bitcoin Support Cut And Dry

Bitcoin could be in danger of falling to new, unexpected lows. That’s the question on all crypto inventor’s minds, as the leading cryptocurrency by market cap tends to lead the bullish charge.

However, a somewhat forgotten style of technical analysis could provide the most cut and dry look at the current support levels – “important” support levels that are fully in tact despite the bloodbath to start December.

Let’s Get Technical: The Origins Of Point & Figure Charting

Technical analysis used to be done entirely by hand before TradingView was invented. The bell would ring each day and traders would add the daily close to the charts while they waited.

More than a hundred years before Bitcoin was created, an anonymous writer by the name of “Hoyle” first wrote about a different type of hand-drawn chart in 1898, called the Point & Figure chart. The book featured his writings. The Wall Street Game: How to Play It Successfully.

Related Reading | Finding Fibonacci: Is Bitcoin Beginning A “Golden” Recovery?

Point & Figure charts are a series of columns of Xs and Os. Unlike the the book’s title and the comparison to Tic-Tac-Toe, this type of chart is no “game.” It is designed to filter out time and noise from price charts, and make levels of support and resistance significantly easier to identify.

It also puts the focus on “important” price movements only. This chart could make Bitcoin’s confusing landscape a bit more clear.


Xs and Os make up a Point & Figure chart  | Source: BTCUSD on

Bitcoin drops to an undeniable support level that bulls must hold

Although the chart may seem unusual, it is a good example of what most traders use when using Japanese candlesticks or bar charts. For an uptrend, support can be drawn at either 90 or 45 degrees. Resistance works at both 90° and 45°.

Red bars in the current column represent the downtrend price action. This was the first time the blue horizontal support lines touched. But, the uptrend line is now intact and the prices are holding higher than it.

Bitcoin “Speculative Chart” Suggests Cryptocurrency To Soon Blast off| Bitcoin “Speculative Chart” Suggests Cryptocurrency To Soon Blast off

Also, price is currently holding above the red line. This could indicate a retest or resistance that has been turned to support. An active buy signal still exists stemming from the most recent higher high of Xs, and a new sell signal won’t generate until two full circles below the blue line, creating a lower low.


The same chart, but with candlesticks instead  | Source: BTCUSD on

According to a Wikipedia entry, “45 degree lines may be used to define up trends and down trends from important highs and lows on the chart allowing objective analysis of trends.”

The traditional candlestick charts are still available here at NewsBTC. They have the same horizontal support levels as the 45-degree uptrend lines. Using the Point & Figure version is instantly more “objective,” eliminating any possible personal bias from the picture.

Similar Reading: Bitcoin Falls Flat| Bitcoin Falls Flat: Examining A Rare Bull Market Corrective Pattern

Zoomed in further below, the Point & Figure chart has potentially filtered out the wick to the low $40Ks, highlighted an “important” retest of the 45-degree uptrend line – which is currently holding – and could demonstrate a resistance to support flip in action.

It would seem that a close to red circles under the red line or below the uptrend lines will be decisive. This would indicate that the bull phase of the market is finished and that more downside is on the horizon.


Losing the 45-degree uptrend would be telling  | Source: BTCUSD on

Follow @TonySpilotroBTC on Twitter or join The TonyTradesBTC TelegramFor exclusive market information and technical analysis education, subscribe to our newsletter. Please note: Content is educational and should not be considered investment advice.

Featured image taken from iStockPhoto. Charts taken from

Get more Crypto News at CFX Magazine