Bitcoin technical analysis 20.10.2020: Support did its job


Seems like the important support level at $10k-10.5k held strong and now we have seen a nice little up move from there.

As we can see from the weekly chart the price bounced up from the white moving average from 20 weeks and from the $10k-10.5k horizontal level. Now as long as we do not close weekly candle below these supports only logical assumption is to stay bullish.

If we take out the recent $12.5k top then price will probably attack fast the 2018 yearly open at $14k. In this case I doubt it will resist the up move much since the consolidation here has been so long. The longer the consolidation, the stronger the breakout.

If the 2018 yearly open is taken out, then there is not a lot of resistance before new all time high prices.

Some might remember this monthly chart that we have been following from time to time. Recent closes are bullish since they have been higher than the closes at June/July 2019 when we topped at $14k.

This strong volatility from the start of the year 2019, first strong rally to $14k and then very strong margin call cascade to below $4k indicates to me that the big money has been shaking the weak hands out of bitcoins and accumulating before a big rally to a new all time high.

It seems likely that we are holding these important supports here and this recent consolidation is simply accumulation while whales anticipate higher prices in the short term and especially medium to long term future.

Some companies have come public saying how they are accumulating bitcoin with their balances. I believe this has been a trend for some time now and these news are just showing the top of the iceberg.

To conclude this analysis. Recent action over the past few weeks is confirming that the support at $10-10.5k was important and supported the price strongly. It is time to be bullish as long as this support holds. Don’t fight the trend until it bends.

Even if things look bullish, don’t over leverage your positions. There will be nasty spikes down to margin call too risky longers. And remember to be ready to turn bearish, if important support levels break.

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