Bitcoin technical analysis 20.10.2020: Support did its job

Share this article:
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on telegram

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.

Related articles
Start the discussion
Inline Feedbacks
View all comments
coinmotion logo

Not a Coinmotion user yet?
Sign-up for a free account right now!

Follow Coinmotion on Twitter for the latest news!


Tilaa uutiskirjeemme
Haluatko kuulla ensimmäisten joukossa tuoteuutuuksistamme, saada super hyper erikoistarjouksia sekä oppia kryptovaluuttasektorista lisää eksklusiivisten markkinaraporttiemme kautta? Haluaisimme lähettää sinulle sähköpostia silloin ja tällöin – ei kuitenkaan liian usein – eli jos haluat päästä etuihin kiinni, täytä tietosi alapuolelle. Pysytään yhteyksissä! Oletko jo Coinmotionin käyttäjä? Voit muuttaa tilaustasi myös tilin asetuksissa.
Tilaa uutiskirjeemme täyttämällä tietosi
Lisätietoja tietojen käsittelystä löydät tietosuojalausekkeestamme
Suscríbase al boletín de noticias
¿Quiere ser el primero en enterarse de nuestras novedades, recibir consejos y aprender más sobre el sector de las criptomonedas a través de informes exclusivos de mercado? Nos gustaría enviarle un email cada cierto tiempo. Para ello, es necesario cumplimentar los datos que hay a continuación.
¿Ya tiene cuenta? Puede gestionar su suscripción a través de la configuración de la cuenta.
Cumplimente sus datos aquí
Responsable del fichero: Coinmotion Oy. Finalidad: envío de información sobre productos y servicios propios al suscrito. Legitimación: consentimiento. Destinatarios: No se comunicarán los datos a terceros. Derechos: acceder, rectificar y suprimir los datos, así como otros derechos, como se explica en la información adicional. Puede consultar información adicional y detallada en nuestra Política de Privacidad.
Subscribe to Coinmotion Newsletter
Would you like to be the first one to hear about our product updates, receive super hyper special offers and learn more about cryptocurrencies through our exclusive market reports? We are happy to send you an email every now and then – not too often – so please fill your information below. Let’s stay in touch! Are you already a Coinmotion user? You can also manage your subscription via account settings.
Subscribe now by filling your details here
Responsible for the file: Coinmotion Oy. Purpose: sending information about own products and services to the undersigned. Legitimation: consent. Recipients: The data will not be communicated to third parties. Rights: access, rectify and delete data, as well as other rights, as explained in the additional information. You can consult additional and detailed information in our Privacy Policy