Bitcoin rallied again on Tuesday, riding yesterday's momentum up to the $12,000 level before finding resistance. This area as been resistive in the past and may cause some turbulence in the near-term, but eventually we are going higher.
(October 20, 2020 8:00 PM EST)
Outlook: Bitcoin has kicked off the week with two consecutive green candles, gaining over $1,500 in less than two days. For anyone that was around in 2017, you remember days like this, as they were the norm. It's been a while since those days, but we've started to see them every once in a while starting in Q2 2020. Bitcoin isn't ready to go full bull market parabolic as it did in 2017; those days are probably gone (at least to that extreme). However, Bitcoin is exhibiting strength that is frankly well-founded. From a purely technical perspective, this is a breakout waiting to happen. Given everything going on right now (COVID, Election, Stimulus Package), this is specifically the environment for which Bitcoin was conceived.
Support: Look for support around $11,000 which is former resistance- that we tested for a while, mind you, as it is perfectly aligned with the 50 Day EMA. Below that, longer-term support at the $10,000 level, which should now be buoyed further with the rising 200 Day EMA around $9,800.
Resistance: I was looking for an impulsive candle above $11,500 and we got it. Now, I'm looking at $12,000, which looks like it'll be facing near-term pressure. After that, I don't see a ton of resistance between there and $20,000, so it might come quicker than most expect.
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