[BTC/USD] The Road To Reaching $20,000+! - By Trading-Guru

Hi everyone, in this detailed technical analysis I will walk you through the most important technicals on BTC/USD at the moment. Most importantly, I will discuss the parabola that has predicted the previous increase in price very nicely. Then, I will explain what things you need to take into account when the price reaches the horizontal resistance of the previous all time high.

I always try to make the chart as self-explanatory as possible, but here is a more in-depth written explanation if you want to understand the narrative better.


Parabola

Here is the order of touchpoints on this parabola that with every step gave us slightly more evidence about the incoming increase in price:

• The first of the touchpoints on this parabola were from the 5th of September. We see that the price has hit a temporary low near the $10,000 mark after a big hit in the price coming from $12,000
  
• The second touchpoint happened on October 8th. We can already see here that every time the price dips the bottom is a bit higher than it used to be. For the first time, you can start to see a bullish trend .
  
• From the 19th of October it becomes more evident that the price is rising, the touchpoint here was enough to let the price jump into the air. BTC is officially taking off, in just two days the price increased by 10%!
  
• Early November we see multiple interesting touchpoints. The price is still bullish but struggling. It reached around $14,000 three times in a row and it got rejected on every attempt. Then, when it hit the parabola the price jumped up again!
  
• And finally, the last recorded touchpoint. My previous idea was published around this level and we saw that this parabola holds future value as well as historic value. It beautifully responded to the parabola support, and helped us to predict another rise in price. Technical analysis becomes way more interesting if it can predict causal relationships!
  
• If the parabola holds we can expect the price to struggle around the $18,500 level for another 4 to 5 days. Then if it touches the parabola and it holds, we can expect the next jump in price. Will that be the jump to propel BTC above the previous resistance?
  

By end November this parabola predicts a price of over $20,000 for BTC! Bringing it close to the resistance of the all-time-high. The resistance itself has many ways to trade it. To decide on the exact level of the resistance I looked at the all time high. The highest level that BTC/USD ever traded on on Bitstamp was around $19660. We obviously expect resistance around this level.


Horizontal Resistance Level of the ATH

Be mindful of the consequences of this level beyond technical analysis. If the all-time high breaks, we can expect a lot of external consequences as well. For instance, more news articles will be published about the breaking of the previous all time high.

Subsequently, we can expect more attention drawn to bitcoin, increasing the demand while keeping the supply stable. This creates a second influx of demand that can be great for the price. Expect that if BTC breaks above $20,000 we will see an immediate secondary response of another easy +10% gain.

The parabola support has been very interesting recently. Perhaps we need to start considering adding an alert for it on 100eyes too. Now that you understand all the possible consequences in depth it's time to start placing your orders. Best of luck in your trading!



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Comment:

Many people reached out to me and asked if I am still bullish given the sudden drop in price of BTC over the last few hours. My answer: yes.

The reason for this answer is that we are not near the parabola yet, and in my newest idea I explained how much time we still have before we touch the parabola and show you a zoomed-in version of this chart.

Please go check it out!