Bitcoin is grinding up Price analysis 18 Nov 2020
Updated
Bitcoin bounced, again, and exactly from the order-blocks highlighted in my previous analysis on 08 Aug 2020. There has been a lot of positive gains and updates for Bitcoin which we need to discuss today. This is the fourth time I have to edit this analysis since BTC keeps going up and price is now close to ATH. There has been a lot of gossip around public listed financial companies and hedge funds scooping up bitcoins. The last section of this analysis will highlight some interesting news around the corporate sector buying bitcoins.
But some analysis of current price action first.
Monthly:
The price dropped from $12,000 in August to almost $10,000 in Sep (exactly where support order-block was highlighted), bounced back up and now trending around $18,000. The green line at $14,000 was the only significant resistance level left on monthly charts, which has been taken out and flipped as an interim support.
Outlook on the monthly chart is now very bullish. Nov 2020 candlestick has already surpassed the previous ATH close levels. If it closes anywhere between $17,000 – $18,000, it could be an indication of a confirmed breakout. A close around $15,000 will not be a bad sign either. Overall, BTC has not looked this strong since Jan 2018. There are no red lines on my chart since there is no overhead data available to highlight potential resistances.
Weekly:
Weekly chart has a bullish outlook too. Cryptoriate’s custom MACD had a bullish crossover in May 2020 and the price has been rising ever since.
Bitcoin has successfully taken out all the resistance levels highlighted as red lines in previous analysis and the only significant resistance remains at $19,000. BTC is constantly grinding it’s way up from almost $10,500 in early Oct 2020 to $18,000 in mid Nov 2020, posting a whopping greater than 70% profits. Which asset on this planet does that?
However, RSI looks overbought and a retracement at this stage is more likely if investors chose to take profits. In case of a draw-down, BTC has a strong support order block spanning $12,000 – $10,000, highlighted in green on the chart.
Once above $20,000, BTC will have no established levels and sky’s the limit.
Conclusion:
Today, the Bitcoin outlook has changed and a large number of individuals and entities are not skeptical about it anymore. There has been some unprecedented demand for bitcoins in 2020 despite the price action and volatility. Grayscale Investments, one of the world’s largest digital assets managers, marked the 3Q20 with more than $1 billion invested in digital assets, with a major portion invested in bitcoins. It also reported, in its Digital Asset Investment Report 2020, that 81% of the investment came from institutional investors, mainly hedge funds. This is significant!
Some other companies include Square, Inc., which announced the purchase of almost 5,000 bitcoins for $50 million in Oct 2020. MicroStrategy, Inc. submitted a form 8-K to SEC on Sep 14, 2020 citing the acquisition of 16,796 bitcoins. The company bought a whopping 21,454 bitcoin in Aug 2020. Boasting owning a total of 38,250 bitcoins, it is a hodler of around 0.182% of total bitcoins supply as of Oct 2020. The company scooped up these coins at an aggregate purchase price of $425 million, inclusive of fees and expenses.
A list of public listed companies which have invested in bitcoins can be found here:
bitcointreasuries.org/
Other notable coins with significant interest are Ethereum, Litecoin, Bitcoin Cash, and Ripple. However, this is not an exhaustive list of in-demand altcoins.
Sources:
grayscale.co/insights/
squareup.com/us/en/press/2020-bitcoin-investment
microstrategy.com/en/bitcoin
Disclaimer: The writer is not a Financial Advisor, and this article is not investment advice. The information is written for educational and entertainment purposes only. The writer owns only a fraction of a Bitcoin for experimental purposes. BTC markets are highly volatile and risky in nature. DYOR before making any investment decision, rather than listening to a stranger over the Internet.
But some analysis of current price action first.
Monthly:
The price dropped from $12,000 in August to almost $10,000 in Sep (exactly where support order-block was highlighted), bounced back up and now trending around $18,000. The green line at $14,000 was the only significant resistance level left on monthly charts, which has been taken out and flipped as an interim support.
Outlook on the monthly chart is now very bullish. Nov 2020 candlestick has already surpassed the previous ATH close levels. If it closes anywhere between $17,000 – $18,000, it could be an indication of a confirmed breakout. A close around $15,000 will not be a bad sign either. Overall, BTC has not looked this strong since Jan 2018. There are no red lines on my chart since there is no overhead data available to highlight potential resistances.
Weekly:
Weekly chart has a bullish outlook too. Cryptoriate’s custom MACD had a bullish crossover in May 2020 and the price has been rising ever since.
Bitcoin has successfully taken out all the resistance levels highlighted as red lines in previous analysis and the only significant resistance remains at $19,000. BTC is constantly grinding it’s way up from almost $10,500 in early Oct 2020 to $18,000 in mid Nov 2020, posting a whopping greater than 70% profits. Which asset on this planet does that?
However, RSI looks overbought and a retracement at this stage is more likely if investors chose to take profits. In case of a draw-down, BTC has a strong support order block spanning $12,000 – $10,000, highlighted in green on the chart.
Once above $20,000, BTC will have no established levels and sky’s the limit.
Conclusion:
Today, the Bitcoin outlook has changed and a large number of individuals and entities are not skeptical about it anymore. There has been some unprecedented demand for bitcoins in 2020 despite the price action and volatility. Grayscale Investments, one of the world’s largest digital assets managers, marked the 3Q20 with more than $1 billion invested in digital assets, with a major portion invested in bitcoins. It also reported, in its Digital Asset Investment Report 2020, that 81% of the investment came from institutional investors, mainly hedge funds. This is significant!
Some other companies include Square, Inc., which announced the purchase of almost 5,000 bitcoins for $50 million in Oct 2020. MicroStrategy, Inc. submitted a form 8-K to SEC on Sep 14, 2020 citing the acquisition of 16,796 bitcoins. The company bought a whopping 21,454 bitcoin in Aug 2020. Boasting owning a total of 38,250 bitcoins, it is a hodler of around 0.182% of total bitcoins supply as of Oct 2020. The company scooped up these coins at an aggregate purchase price of $425 million, inclusive of fees and expenses.
A list of public listed companies which have invested in bitcoins can be found here:
bitcointreasuries.org/
Other notable coins with significant interest are Ethereum, Litecoin, Bitcoin Cash, and Ripple. However, this is not an exhaustive list of in-demand altcoins.
Sources:
grayscale.co/insights/
squareup.com/us/en/press/2020-bitcoin-investment
microstrategy.com/en/bitcoin
Disclaimer: The writer is not a Financial Advisor, and this article is not investment advice. The information is written for educational and entertainment purposes only. The writer owns only a fraction of a Bitcoin for experimental purposes. BTC markets are highly volatile and risky in nature. DYOR before making any investment decision, rather than listening to a stranger over the Internet.
Note
BTC pulled back as expected, $17,800-17,700 holding as interim resistance now
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.