Bitcoin propelled higher again on Friday, rocketing up to the $16,000 level before finding resistance and turning around, closing just above the $15,600 level. It goes without saying at this point: Bitcoin is in a bull market.
(November 6, 2020 7:30 PM EST)
Outlook: Another day another Bitcoin breakout higher, which essentially confirms Bitcoin has officially entered a bull market. Sure, this move has gone a little parabolic, but that's not to say it isn't warranted. The fundamentals and technicals are significantly stronger now than they were in 2017, which was fueled largely by a retail mania of casual investors looking for quick profits on speculation of potentially superior technology. Now, with Bitcoin seeing adoption by legacy financial firms and funds, the Layer-2 scaling solution "Lightning Network" ever-nearing launch, and ETH 2.0's deposit contract officially live, things are looking extremely supportive for another wave of crypto mania. In this current move, I think Bitcoin could 'retrace' all the way up to the $20,000 level, but there it will face significant resistance, probably resulting in a pullback as deep as $12,000 - $13,000. If such a deep pullback occurs, which isn't impossible given the gravity of this current rally, I will back up the dump truck to buy that dip.
Support: Just last week we were talking about how Bitcoin looks a little overdone and how it's probably due to pullback to the $11,000 - $12,000 level. Did it even get close to there? No. Support now would be between $13,000 - $14,000, and below there $11,000 - $12,000. $10,000 is my absolute floor right now - unlikely we see that anytime soon, if ever again.
Resistance: All eyes are on $20,000. Any selling at $16,000 is probably just profit-taking or trading inline with gold or opposite the DXY.
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