Nov 9, 2020: Bitcoin had a strong rise again last week

by | Nov 9, 2020

Bitcoin had a strong rise again this week closing above $15,290 resistance printing a 12% price increase.  Nothing seems to be able to stop it as the price is expanding rapidly. Breaking the next resistance ($~16,200) could lead a quick 1k$ move to challenge 17k$ resistance and even the ATH. We now have critical support at the monthly level ($~13,860 and $~12,900). Losing those supports should be a major signal of further correction to come like indicated in last week’s report.

As projected last week, and after breaking its monthly level at $13,865 price accelerated toward the 16k level where it found resistance at the high of the channel. However, if the price corrected sharply, it did not reject strongly enough to form any kind of trend reversal pattern.

Supply seems to be overwhelmed by the demand causing important short liquidation which ultimately leads to an acceleration of price expansion. As we are now sitting just under the upper side of the rising channel, the price can normally be expected to consolidate for a bit if it wants to break this resistance.

Traders should be wary of any price action above local high as long as $16,174 (monthly level) isn’t claimed as support.

A quick rejection in this area before testing lower support could form a reversal SFP. As of now we have potential support at the monthly vwap $~14,700.

Losing our local low should send us to a test monthly level and POC area between $13,950 and $13,700, and potentially as low as $13,250.

Overall, if Bitcoin seems unstoppable, it is important to remember pullbacks and trend reversal happen as quickly and sharply as price rise.

FOMO looks real, Fear & Greed index is showing us extreme greed.

This week-end most media declared Biden the winner of the US presidential election. As of now Trump is not conceding the election and is claiming fraud happened.

It will be important to keep an eye on the traditional market reaction from this news. As suggested last week, if markets were to tank strongly, it is very likely that Bitcoin price will be affected.

In these circumstances, it is important to practice strong risk management as risk increases with volatility.

Written By The French Bull

The French Bull is an independent analyst who likes to write about crypto markets. He bought his first Bitcoin in 2012 and haphazardly sold 2013 top. He then started to get interested in altcoins and started to learn how to trade in early 2017.
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