Bitcoin rocketed higher on Tuesday, rallying through the $17,000 level and reaching up towards $18,000, nearly scraping it before settling just under on the daily candle. Bitcoin has gone parabolic is moving furiously, which is a bullish sensation we’re starting to refamiliarize with for the first time in 3 years.
Outlook: Bitcoin popped higher on Tuesday, sailing past $17,000 and nearly grasping $18,000 before closing near the daily and multi-year high. Same story as yesterday: Bitcoin’s overbought and parabolic, but I’m bullish on medium-long term timeframes, so I’m not a seller or short-seller, I’m a buyer on dips. That being said, a sharp rally like this one will probably lead to a sharp retracement as well, which I’m more than happy to take advantage of at lower prices.
Support: Look for support around $14,000, or frankly even $13,000 would be value at this point. Below that, added support around $12,000, $11,000 and ultimately $10,000. The lower Bitcoin goes, the higher the chance of a violent bounce. On a late Nov/early Dec selloff, which is looking more and more sharp for Bitcoin given this blowoff top, I’m looking to buy dips.
Resistance: $20,000 is my target here on this rally. This is Bitcoin’s all-time high and a large, round psychological level. Any retail minnows who got sucked into the December 2017 mania and bought the top will likely be looking to break even, though that selling pressure will be a fraction compared to the technical selling after a full multi-year retrace. I think $20,000 is a tough resistance level that’ll put up a fight possibly into Q1 2021, but will eventually fall as crypto in 2020-2021 is completely different and more evolved than speculation mania in 2017.
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