Technical analysis only works when everyone in the stock or company or in this case currency is 'doing' it and not because it has any foundation or credibility to it, but only because of its trading history. Best way to invest is to do it slow and steady and invest in a low cost index fund and letting it compound year after year as you add to it. Get rid of any debt you have and start investing anything you have in your mid 20s and more each year and youll be set in 30 years.
In the case of bitcoin it 'is' a technical analysis type of investment. Most of the people are just flipping it back and forth, especially the big fish. If you wanna get into bitcoin, youre better just doing it as a flip and using technical analysis like JJP has been doing, but I suggest you take a look at RSI and not just support levels etc.
I dont use support and resistance levels with this, but if you look at the 4 year or 5 year RSI(Relative Strength Index) it is so PREDICTABLE and it's basically a traders paradise. Everytime it reaches the oversold levels around 25 or 30, it shoots up to 70-80 oversold levels whether it takes a month or 3 months is irrelevant, the point is it will do it every time, which is more proof that no one actually believes in bitcoin as a long term investment, people are simply buying bitcoin to trade it up and down for a quick flip. The price levels are showing some long term growth over the years, but in my opinion it is mostly a traders paradise type of investment until bitcoin goes mainstream.
Ive been watching bitcoin for a year or so now, but have yet to put money into it. I rather not do that to my bankroll at this point in time even though ive nailed every single prediction with it the last 2-3 times of when it will rise and fall. Just go check the WOV bitcoin forum thread.