Bitcoin's Polarity

Louis Sykes
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?

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