Bitcoin Finally Finds Support at the $4,000 Level: What's Next?


Bitcoin briefly fell below $4,000 then started a rebound. Where to from here?

I managed to catch a screenshot of Bitcoin right after it crashed through the $4,000 mark.

At that time it was down over $3,718, about 48% on the day.

Buyers then stepped in pushing the price back over $5,000, a rebound of over $1,000 in a matter of minutes.

Technically Speaking

Technically speaking Bitcoin has a very broken chart.

The charts did not show support at $4,000 but I won't argue with them. That is the new support level to watch.

Below $4,000, the next support is at the previous low of $3228 or so. If that fails, then I am watching the $1975 area then $995. Ouch!

Price vs Hash Rate

​Once again I point out the widely believed nonsense that price follows hash rate.

Hash Rate Hits Record

Please consider this January 2, 2020 post Bitcoin Kicks Off 2020 More Secure Than Ever as Hash Rate Hits Record

Bitcoin Hash Rate


Bitcoin vs Hash Rate

So we are near record highs on the hash rate.

Bitcoin peaked at $19,783 on December 17, 2017.

Bitcoin broke through the $4,000 level today.

So, please stop the nonsense that Bitcoin follows the hash rate. Clearly it doesn't.

Hash Rate Projections

Belief in the hash rate is likely what's behind the $1,000,000 projections.

Since people still believe in the million dollar projections they are forced to believe in proven nonsensical hash rate theories.

Misunderstanding Supply

The fundamental issue behind both projections and hash rate theories is a huge misunderstanding of supply.

Contrary to popular myth, the supply of bitcoin rises every day albeit at a diminishing rate.

Break in Faith

Question of the Day

Liquidity Moment

Bitcoin just had a liquidity moment.

Perhaps it is related to liquidity issues and selling as discussed in Bond Market Dislocation: What the Hell is Going On?

There is every reason to believe Bitcoin has more liquidity moments ahead of it.

Mike "Mish" Shedlock

Comments (12)
No. 1-8


The chart from Investing.Com had terribly wrong one day percentages.

I notified them and dropped the percentage decline from the charts in this post and the previous.


There's firm support at zero.


I argued with a guy at a bar about this 2 weeks ago. He sounded totally "invested" and I bet he's sunk more beer bottles than dollars in his investment.


I wonder if it will end up being worth more than paper with dead presidents on them.

I guess at least the paper can heat something.


Thanks to GREGGG for these two very informative videos.


Sure, $4,000 why not...its actually up to $5,900 rignt now (Friday early morning) so who knows! One thing for sure some early investors may have needed liquidity -- market clearing for large volumes of Bitcoins may be tricky! Facts are you sell what you can.

But assuming "support levels" for Bitcoins is hard to justify under any light. But as you say, $4,000 "why not!"


Would suck if Trump invokes emergency measures which give him complete control over the net and declare btc a nuisance that must be dealt with that's enhancing the crash.


Bitcoin and other crypos are nothing more than fiat currencies for geeks and the gullible.

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