Dear Traders,
Today is the 15th December 2020, let’s get another market update released, and talk about some of the recent moves we have seen across the board. I hope this newsletter helps to explain in more detail my current bias for PA and where I think we could be heading over the coming days, weeks, and months!
Bitcoin breaks previous ATH
Well, ladies and gentlemen there we have it, after three long years of bear markets, downward pressure, and FUD, Bitcoin has finally broken its previous all-time high, making history here today on the 16th December 2020.
Price ended up breaking above $20,000 earlier on this morning and since then has looked super strong. I mentioned this morning that I had an idea that $21,100 would be tested in the next 24 hours, this was due to the fact that I assumed the previous ATH would be broken and due to the amount of conviction and strength we have at an ATH, it was very likely that instead of slowing flipping it into support, bulls would find some serious momentum on a breach of this level.
So take in the next few days while BTC is above this level, take some time away from the charts, take a small amount of profit and enjoy Christmas because next year is going to be pretty crazy, especially in terms of BTC price action. I don’t think it would surprise anyone if I shared my personal prediction of $40/50,000 for BTC in 2021.
I think in terms of momentum from here, it’s hard for me to say that I want to be bearish, I’m not bearish and I think the drop we saw into the $17’000’s was likely the pullback for the year. I think it is more than likely price will slowly move higher from here on out and into the new year, possibly even just see price accumulate above this $20,000 level that is now just so important for bulls to hold as support. Technically speaking everyone who previously bought BTC is now in profit, so we might see some old buyers close out their positions at breakeven, that said I think the overall buyers for BTC heavily outweigh any sells right now, and I expect it to remain this way, not only because we are now in a bull market but also due to the institutional investors.
If we take a look at the LTF BTC chart we have been watching for the past week, you can see that price action pretty much perfectly played out, we saw the S/R flip of that key $19,300 level that we know is so important, and then ATH is broken easily. One question you may ask is why be bullish on PA flipping $19,300 on this attempt on not last month when it did the same thing, well this time was different because we already saw a rejection with a 15% drop, and on this attempt, bulls managed to recover all that gound in just a few short days, showing huge amounts of strength and buying pressure. So much to talk about in the market right now, in this one I just wanted to discuss BTC, and tomorrow I will have a separate follow up newsletter on ETH.
Thanks, everyone for tuning into this newsletter edition, if you found it helpful then please do share or leave a comment with any questions below. Thanks for the continued support and please do signup with your email address if you are new here!
Thanks, Cactus