Bitcoin broke out during the month of December (thus far), breaking above a long-term and historic resistance level of $20K, finally printing an impulsive candle well into the $20,000s. This is a very bullish impulsive candle and breakout pattern which should only continue to gather momentum in the coming months. Bitcoin is coming out of and officially finished with a long, multi-year consolidation pattern in which Bitcoin retraced ~85% of its 2017 rally and traded sideways for about three years before finally breaking out. Looking forward, this chart has me feeling exceptionally bullish. 

(December 19, 2020  7:30PM EST)

As far as upside targets go, I think these lower Fibonacci extension levels (127.2%, 161.8%) are short-term to medium-term stepping stones on the way to longer-term targets at significantly higher levels. As you can see on longer-term charts of Bitcoin, once Bitcoin starts breaking out on the monthly chart (or any chart, for that matter), it tends to snowball, gathering more momentum the higher and faster it rises. This goes for any asset but possibly ten-fold for BTC.

Accordingly, now that BTC is convincingly trading above $20K, a major breakthrough in price action and now repeatedly proving 'marquee' traditional investors dead-wrong, BTC should continue to convert bears into bulls, further adding fuel to this long-term rally. I think we probably see a short-term to rally faded around currently levels around $24K - $25K or $30K, followed by a shallow retracement to $20K or the high-teens if we're lucky. After that, BTC should take out $30K without much difficulty and target the 261.8% fib extension as shown in the chart above currently sitting around ~$46K. This would put BTC just short of $50K, which would put BTC just under a $1 trillion market cap. I think that level could service as formidable resistance, at least for bit of time, but ultimately, there is simply too much pressure underneath to propel BTC higher and farther. 

Support: From here I think $18K should be supportive as it has a couple of times over the past month, but more importantly will be if this impulsive rally continues on, in which case a pullback to the former resistance level -- $20K -- would step in as a new support level. What a tremendous turn of events. If that's the case, then BTC is ready for another wave higher and puts in a major higher low on the longer-term charts. 

Resistance: We're in uncharted waters here, but I think now that BTC is well into the five figures, it'll move in larger increments - at least $2,000 or possibly even $5,000 increments. We could see a pullback around here at the $24K but more likely around $30K. Following a pullback, BTC should then continue well into the mid-five figures, at which point we'll get to reevaluate BTC's progress. 

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