Bitcoin rallied on Thursday, breaking above the 50 Day EMA level AND the descending trendline, closing the day just under $11,000. This is a good sign to say the least, and would be punctuated with another positive candle tomorrow going into the long weekend.
(October 8, 2020 8:00 PM EST)
Outlook: Bitcoin surprisingly broke out a bit today, rallying nearly $500, finishing near the highs just under $11,000. I've said this a lot but I have to stick to it; I need to see a convincing overtaking of a previous resistance level, then a successful test of it as support before I'm ready to call this a resumed uptrend. This long-forming triangle consolidation pattern going back to the summer months seems about ready to be resolved. If today is any indicator of where it's going, then the short-term would agree with the long-term. Let's see what happens tomorrow, as that will determine how valid of a day today's price action was, if at all.
Support: $10,000 continues to be massive support, $10,500 level will be support IF we pull back and bounce off it. As you can see in the chart above, BTC has attempted this a few times already, so far to no avail. If BTC falls below $10,000, look for support at the 200 Day EMA around $9,600 and then $9,000. I wouldn't be surprised to see this happen, but I don't think it'll last.
Resistance: Today is interesting, with the 50 Day EMA being overcome with a moderately bullish candle and a retest of $11,000 as immediate resistance overhead. If we pull back and bounce off of the 50 Day EMA around $10,700, which would form a series of higher lows and higher highs, then I think it's only a matter of days until we finally penetrate through $11,000 and start looking to $12,000.
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