If you look at a Bitcoin chart and do some Bitcoin daily chart analysis, you will easily see that Bitcoin went on an absolute rip this week! Totally smashing right through the $20K level; a big resistance for the cryptocurrency.
On December 2, I posted on this blog where I thought Bitcoin was headed, you can see that article here: Where Is Bitcoin Going?
And as you can plainly see, Bitcoin totally busted through that resistance zone I had marked out.
Bitcoin Daily Chart Analysis: Hits First Resistance Zone With Ease
Above is the 4 hour Bitcoin chart, but the analysis was done on the daily chart; it barely blinked as it busted through. So where is Bitcoin going now? What does my Bitcoin daily chart analysis say? Let’s find out…
Where is Bitcoin Going Now?
I see two options:
- Bitcoin moves up without pulling back, to between $24,915 and $25,000.
- Bitcoin pulls back before hitting that zone between $24,915 and $25,000.
If Bitcoin pulls back now, I think we see a drop back into that first resistance zone on the chart because this was the first big resistance area around $20,000.
But, if Bitcoin continues to climb without much of a pull back, traders might see some action around that $25K area. This will also be a huge psychological level, regardless if it gets there now or if it pulls back first.
Bitcoin is most likely moving to $25,000 at some point fairly soon. My method for finding support and resistance has proven itself to be very accurate. So, since my method in this situation lines up PERFECTLY with a HUGE psychological level ($25,000), I am going with the chart on this one. But the only question is; what happens in between now and that level?
Once it makes it to the $25K level (if it makes it *wink wink*), I will be expecting some action. Might see quite a bit of chop because of the huge psychological zone it would be in.
Some think bitcoin is headed to $100,000 by the end of 2021. That, I don’t know yet. I will play it by ear. The position I hold is relatively small compared to my portfolio value. Maybe I will add, maybe I won’t. I’ll let the chart be my guide.
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