Bitcoin rallied again on Thursday, breaking above yesterday's low and reaching back above the $11,500 level, closing the day at the high. This is a bullish setup for Bitcoin, as the previous two red days were probably just short-term traders' profit-taking. The bullish breakout from the long triangle consolidation looks to be setting up Bitcoin for a bigger move upward.
(October 15, 2020 8:00 PM EST)
Outlook: Bitcoin initially pulled back but quickly turned around, rallying to end the day near the highs of the session. As long as Bitcoin doesn't break below the 50 Day EMA at this point, I'm bullish on BTC in the short-term. If you've been following this channel for some time, you already know how I feel about Bitcoin, Ether, and other legitimate Crypto Assets in the Med-Longer terms. I think Bitcoin's working up to break out higher in a larger impulsive move, tackling $12,000, $12,500 and higher. If you zoom out on a longer term chart, you can see where we are in the grand scheme of things and in this developing market cycle. I've said it before and I'll say it again: BTC is in the final phases of its accumulation phase that's nearly 2 years old at this point. You don't want to be chasing the price once BTC is $18,000 this time next year, or even higher.
Support: Look for support below at the $11,000 level which is not much higher than the 50 Day EMA around $10,814. This area, formerly resistance, should act as new support for BTC. If not, then perhaps BTC isn't ready to make a move higher just yet, and we'll see BTC remain trading in a $1,000ish range until an impetus causes it to do so.
Resistance: I'm looking for an impulsive candle above $11,500 and then see what kind of selling BTC runs into around $12,000. After that, I don't see a ton of resistance between there and $20,000, so it might come quicker than most expect. Gold continues to shed off weakness; I expect BTC should parry any attempts even better.
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