Bitcoin has been meandering around the $11,000 level for a week or so now, but things are just starting to get interesting.
Overnight, we saw a massive spike, taking Bitcoin from $11,400 to $11,700 in a matter of hours.
We’re currently in a small retracement phase that is key for Bitcoin’s next push to $12,000.
Can Bitcoin Break $12,000 at Last?
The $12,000 level has long been a bastion of heavy resistance and it’s won more battles than its lost.
With such a sudden and sharp rise to $11,700, it’s going to take a good bit of retracement to secure enough buyers to help get it over the line.
If we can see a day close in the red then we can consider the retracement complete and the push to $12,000 adequately prepared.
If this happens, then we will likely see $12,000 breached before the week is out – hurrah to the bulls!
On the other hand, if we don’t get the necessary retracement level, there will not be enough buying pressure to break $12,000 and the move will get rejected.
If this is the case, the first support level is all the way down at $11,300 and the final level of support, arguably the most important level, is at $10,000.
Hopefully we don’t need to see these two levels of support used again in this push, as settling over $12,000 should help it turn from resistance to support.
A Promising End to 2020
Despite everything that’s gone on, 2020 has actually been a fairly decent year for Bitcoin.
Despite its incredible tank in March, Bitcoin is still up 35% in the past 365 days. If you take the price increase since the March crash, it’s up 179%.
This shows that Bitcoin is on a bullish path and that it will only go up in value over the next few months.
If the Trump administration scores a win in the Senate this evening, we could see a further $1,500 stimulus check.
As we saw from the previous stimulus check, this form of monetary policy is good for Bitcoin, and with the new package touted to be worth more than before, we will likely see more action and more results.
Combine the influx of new buyers who are using their check to buy Bitcoin and try to make some money with the inflation that printing money creates, and you’ve got the perfect storm.
If the stimulus check gets the green light, then our prediction of $19,000 for Bitcoin by January might be a little small.
If you throw in the US elections to the mix, things look even better for Bitcoin as people look to escape from economic fallouts with the Dollar.
Price action is just around the corner, all we have to do is sit tight.
This retracement could be your last chance to pick up Bitcoin for less than $12,000 this year, so do bear this in mind.
If the retracement doesn’t manage to create a daily red candle, then you might want to consider placing a short as it’s a long way down to $11,300.
Leave a Reply