For the past month, Bitcoin has pretty much been moving sideways. The price per coin has been staying at approximately $29-30k. But, we're now starting to see Bitcoin slowly make a recovery (as it only recently dropped from ~$40k to its current price).
First, lets introduce you to support and resistance levels. Support, also known as a support level, is the price level below which an asset does not fall for an extended period of time. When an asset's price drops to a lower level, buyers enter the market, creating a support level. The basic support level may be tracked in technical analysis by drawing a line around the lowest lows for the time period in question. With the general price movement, the support line might be flat or inclined up or down. More complex variations of support can be identified using other technical indicators and charting approaches. TL;DR, a support level is a price level in which Bitcoin (or a different asset in question) does not go below, for a given period of time.
The price at which the price of an asset comes under pressure on its way up due to the development of an increasing number of sellers who want to sell at that price is known as resistance, or a resistance level. Resistance levels can be short-lived or long-lived, depending on whether fresh information emerges that affects the broader market's attitude toward the asset. Drawing a line along the maximum highs for the time period under consideration may be used to chart the basic resistance level in technical analysis. Support can be contrasted with resistance.
Bitcoin's support and resistance level seems to be going up, or in other words, its support and resistance levels are slowly stationing at higher and higher price levels, meaning Bitcoin is slowly starting to trend upwards, probably because more people are buying it causing its dips to be less severe. Here's an illustration below, so you can visualize what we're talking about.
The chart displayed above is from Coinbase (with our added "support level" illustration), and shows the value of Bitcoin for the past 30 days. We can see that, as mentioned, its support & resistance levels are slowly climbing, meaning the value of Bitcoin is slowly increasing, making its recovery after nosediving from ~$40k to ~$29k. Usually, this means that it's probably a good time to enter the market, but obviously nothing is guaranteed. Bitcoin, in the long-term, will only go up, unless some catastrophic event occurs creating irreversible damage, which is exceedingly unlikely to ever happen, but of course remains a possibility.
In addition to this pretty good news for Bitcoin - the 2nd largest blockchain, Ethereum, is finally about to launch their long-awaited ETH 2.0 upgrade, which makes the blockchain much faster in terms of transaction processing/confirmation speed, and makes transaction fees insanely cheaper. The blockchain, as part of the ETH 2.0 upgrade, is also moving to Proof-of-Stake (PoS) which makes the Ethereum blockchain more environmentally friendly by a large magnitude. The ETH 2.0 upgrade also brings various other key security and performance upgrades. Lastly, the Ropsten testnet (Ethereum's public test network, which is like the main network but is used solely for testing stuff), has officially transitioned to ETH 2.0/Proof-of-Stake. So far, it has been functioning perfectly, which is good news for the future of Ethereum and its upcoming major upgrade.
Another day, another chain of blockchain news. We hope you found this article helpful in some way, and we'd appreciate it if you could share it with your friends & colleagues, thanks!