Bitcoin dropped Monday, getting rejected by the $11,000 level and reached down towards the $10,000 level before finding support around $10,500. This likely was correlated to the equities AND gold markets both selling off multiple percentage points during European and US markets. Volatility was already present, it now appears that fear is entering markets as well.
(September 21, 2020 7:30 PM EST)
Resistance: In the short-term, resistance is at the 50 Day EMA around $10,700, $11,000, and then $12,000. Bitcoin has been bouncing around in this $1,000 range between $10,000 and $11,000 for a few weeks now. If I had any guess as to where Bitcoin is going based on recent market direction and price action, it would be down. Where? That's the multi-million dollar question.
Support: Look for support at $10,000, which is a huge psychological level. Next would be the 200 Day EMA around $9,468. After that, look for longer term support on the Weekly chart, which are my lines in the sand.
Outlook: Bitcoin is likely to suffer collateral damage from equities and gold markets selling off. There is a lot of negative sentiment brewing in the equities and commodities markets which may have short-term effects on Bitcoin. Gold has had a horrendous day, dropping from ~$1958 overnight to as low as $1889 mid-day today. On the bright side, Bitcoin has held up substantially better than gold in light of all this market bleeding. However, in the short-term, I expect Bitcoin not to stray too far from the general market sentiment right now. Once the rampant selling and volatility has settled for a bit, we have seen time and time again how Bitcoin historically decouples from equities market correlations in as little as 30 days post-liquidity event. Of all markets experiencing selling right now, Bitcoin is the one I am least concerned about.
About Us:
I take time out of my day to share these with the community completely free. If you enjoy these posts, please support the channel by "Tipping" this post below, or using either of these referral links below. They cost you nothing and give me a small reward, which makes me a little happier to share these personal analyses with you at no cost.
