Bitcoin grinded lower Friday, making a small drift lower and closing just under the $11,000 level. It is encouraging that Bitcoin is not being immediately rejected around this area of resistance, but also has not showed it has convincingly established the 50 Day EMA as support once again.
(September 17, 2020 8:30 PM EST)
Support: Same deal as yesterday; Look for support at the 50 Day EMA, then $10,000, which is a huge psychological level. Next would be the 200 Day EMA around $9,458. We'll get into this on Sunday, but frankly, as long the 200 Weekly EMA holds, Bitcoin is most likely going to continue up. In the slightly less long-term timeframe - the Daily chart, the 50 and 200 Day EMAs both punctuate "shorter" (medium) term support underneath. This means higher highs, higher lows.
Resistance: In the short-term, resistance is at $11,000 and then $12,000. After that, it's $14,000 and probably a straight shot up to $20,000, which is when things start to get fun and the mania starts up again. Think CNBC's coverage in December 2017.
Outlook:
For now, Bitcoin is likely to trade in a range between $10,000 and $11,000 until there is a catalyst for a significant move in either direction. There is a lot of negative sentiment brewing in the equities and commodities markets which may have short-term effects on Bitcoin. Gold has been fairly resilient lately, at least compared to equities, which sold off hard today to end the week. Things will be interesting to watch Monday when markets reopen, possibly lower.
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