Bitcoin rallied a bit during the week ending October 25th, grinding a little higher to close the week around the $11,400 level. This looks to me like Bitcoin's ready to move higher and attempt the $12,000 level.
(October 18, 2020 8:30 PM EST)
Support: Look for support every $1,000, so $11,000, $10,000, and the 50 Week EMA at $9,537. Longer term support would be the 200 Week EMA around $6,922, which is my line in the sand for the status of this uptrend. A break of that and my perspective changes.
Resistance: The more you zoom out on this chart, the more bullish it is. Shorter-term noise aside, I see higher highs, higher lows, an ascending trendline, increasing volume, rising EMA's, and a developing Elliott Wave count (rough sketch below). If BTC did put in a Wave 2 correction in March of this year, then Bitcoin should be bought on dips as it targets the $12,000 level and possibly the yearly highs around $14,000.
Outlook: After a quiet weekend, my view remains the same. I'm a buyer on dips, as I'm leaning towards the proclivity that Bitcoin will not go below $10,000 again. With the confluence of this current macroeconomic climate and Bitcoin's bullish fundamentals and price action, I think any time spent below $10,000 is a discount and should be taken advantage of. We are going higher; this market cycle will be a slower grind than the past's, but that's not to say Bitcoin's volatility is gone, only diminishing over time.In the near term future, expect increased volatility as we are less than 3 weeks away from the US Presidential Election, and who knows how long after that it'll be before there's an 'accepted' winner. There's a lot of hype right now around a possible COVID vaccine as more cities around the world re-shutdown amid infection spikes, and Congress continues to flounder around a additional stimulus talks. Accumulation is the name of the game. I think anyone who buys Bitcoin in 2020 and holds until 2022-2024 will outperform anyone without Bitcoin in their portfolio.
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