Bitcoin Daily Price Forecast (8/21/20) - Buy the Bottom of this Ascending Channel?

By Crypto Daily FX | Crypto Daily FX | 20 Aug 2020


Bitcoin rallied on Thursday, bouncing off the $11,500 level and eventually settling around $11,860 USD. Thursday's price action snapped two consecutive red days, but such a relatively quiet and uneventful day doesn't have me convinced the bears won't take us a bit lower before going higher. 

(Aug 20, 2020 8:00 PM EST)

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After slicing through the $12,000 level for a couple days, Bitcoin gave back $12,000 as support and fell back beneath it, reaching back down towards the $11,500 level before bouncing up a bit today. We might be established a bit of an ascending channel and might oscillate for a few weeks between $11,000 and $12,000 until Bitcoin has built up enough momentum to continue higher. The charts still look very healthy and the macro economic backdrop is nothing short of excellent for a high stock-to-flow-ratio asset like Bitcoin. Once Bitcoin breaks retakes $12,000, $14,000 should be next, followed by $20,000. 

Look for support around $11,000, the 50 Day EMA at ~$10,500, and of course the $10,000 level underneath should offer significant support and areas where a lot of buyers will be ready to step in and buy Bitcoin at a discount. Lower, there is a confluence of longer-term support around the $9,000 level, with the 200 Day EMA around ~$9,125, as well as the 50 Week EMA around $9,000. If you're patient and maybe a little lucky, this is an excellent and low-risk entry point (not financial advice). 

Ultimately, this market is going higher and remains on a buy-the-dip scenario until the trend changes, which I don't foresee happening for at least a couple years, possibly longer. In the meantime, we'll closely monitor the daily chart and look for any indications of major trend changes or affirmations of the current trend. For now, dollar cost averaging (DCA) and waiting to buy closer to support would be advantageous until we get a clearer picture.

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