Bitcoin rallied on Thursday, bouncing off the low $10,000 level after following equities' downturn of late before running into resistance at the 50 Day EMA.
(September 24, 2020 8:30 PM EST)
Support: Support at $10,000 cannot be understated, which is a significant psychological level for sophisticated and retail investors alike. Look for continued support there, and below at the 200 Day EMA around $9,510.
Resistance: 50 Day EMA is immediate resistance; and we re-re-re-retested it again today. If BTC breaks above that, look for a move above that level; it's only then that we can start talking about $11,000 and above. Bitcoin has been bouncing around in this $1,000 range between $10,000 and $11,000 for a couple months now, but based on recent market trends, it looks like Bitcoin might actually break below $10,000 for a brief time in accordance with bleeding (insert any asset class) markets before rebounding.
Outlook: This is a positive candle, but it has to be taken with a grain of salt, as equities and gold both rebounded today after sizable selloffs the last couple trading days. This is a typical market reaction and looks to be a deadcat bounce of sorts, as markets consolidate before heading lower to complete an elliot wave 5-wave structure. Depending on your time scale, this bounce could be a Wave 4, which is consolidation before one final drop lower. This remains to be seen, but for now, the trend is lower. There are plenty of overbought and overvalued markets out there that are good short opportunities; Bitcoin is not one of them. We are buyers on dips, and continue to DCA over time to accumulate for the next bull run, which we believe will become more visible in Q4 2020 once again.
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.
