Outlook: Bitcoin rallied during the week ending December 6th, this time rallying up to a marginal new ATH before getting rejected by the $20,000 level, ultimately settling the weekly candle slightly lower at just above $19,000. This is a bullish candle as Bitcoin made yet another high and a historical high, however marginal, and Bitcoin erased all of the previous week's losses, closing on a bullish note.
(December 6, 2020 7:30PM EST)
It's starting to look like Bitcoin is carving out a new range up in this new altitude between $16,000 and $20,000, so I expect some more sideways trading and bouncing around in this range for some time before we see a sustained move above $20,000 in all likelihood. This gives us some time to accumulate with lower buy orders set near the bottom of the range, as well as patiently waiting for dips lower if they arise. Looking at the chart below, if Bitcoin breaks below the $16,000 level, I'll look for support around the 50% fib retracement around $15K, followed by the 61.8% fib at $13,813. These levels would equate to roughly a 30% pullback over the medium term and would probably satisfy a Wave 4 corrective pattern in order to resume the 5th wave higher. I'm a buyer on dips at the bottom of the aforementioned range and will be waiting (hoping) for a pullback lower to the $14K level to load up even more, though I think that might be asking a little too much at this point -- but who knows?
Support: I'm looking for a short-term pullback, most likely retesting the $16,000 level as support. Below that, $15K and $13k - 14K should provide strong support levels for a powerful bounce higher to resume the uptrend. Bitcoin's in a defined uptrend; I'm not challenging that, nor selling Bitcoin; I'm looking to add value on pullbacks.
Resistance: $20,000 is long-term resistance and has been for nearly three years now. Bitcoin’s not far off, but I think in the short-term, the path of least resistance is lower. Ultimately, I suspect 20K will be breached by Q1 2020, then we’ll be talking $25,000 and $30,000.
About Us:
If you enjoy these posts, please support the channel by "Tipping" this post below, or using either of these referral links below.
