Bitcoin burst higher on Tuesday, breaking above the $13,500 level and settling near the highs north of $13,700. On a shorter time, Bitcoin looks a little frothy, but if Bitcoin can break above $14,000, a run to $20,000 is not out of the question.
(October 27, 2020 8:00 PM EST)
Outlook: Bitcoin has continued its strength, taking a pause around the $13,000 level before promptly moving higher. This is not irregular, as crypto moves tend to be exacerbated to the upside and downside. We seem to be getting a little stretched here as Bitcoin is near the top of the ascending channel and is at ~78 RSI, indicating it is a bit overbought. In all likelihood, I sense a pullback coming, probably upon a reach towards the $14,000 level before a US election/COVID catalyst drags down markets for a short period. If this happens, that'll be a premium buying opportunity for Bitcoin, as that might be the final chance to load up before Bitcoin takes off. I'm not a seller of Bitcoin in any way, shape, form, or timeframe.
Support: I see support at $12,000, 50 Day EMA around $11,500, $11,000 and then ironclad support at $10,000.
Resistance: $14,000 is probably the last significant resistance level between Bitcoin and the previous ATH. I still hold that Bitcoin will probably pull back before making a leg up to $20,000, but Bitcoin has a way of accelerating these processes and not being beholden to people's expectations. If BTC breaks impulsively above $14,000, we could see a straight shot up to $18,000 - $20,000 in a couple days, maybe less as the FOMO kicks in.
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