Using the fan principle, described in Murphy's book, we notice how these trendlines
acted as support and have reversed into resistance. One important thing to note is the slope of these trendlines
. Ii the trendline
is too steep, it suggests prices are advancing/declining too rapidly and that the price change will not be sustained. This can be seen given the first trendline
if we look at them from left to right where we saw the first major decline in bitcoin's price. As the price momentum has slowed down we can notice how the new trendlines
are becoming flatter over time which would could mark the end of the downtrend.