If Bitcoin 17K Holds, Watch For 20K Break Out

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Updated: Dec 10, 2020, 12:07 GMT+00:00

Bitcoin has been gyrating between the 18,500 and 20K resistance zone for about a week. With the recent bullish pin bar now established off of the 17K support, we are looking for the confirmation to enter into a new swing trade long.

These types of consolidations can be tricky and using specific criteria to enter these situations helps to minimize getting caught in false breakouts. Risk can be defined by the low 17K area which means it would serve as an effective location to place stop orders. IF the trade activates, we are looking at a maximum profit target of around 24K.

Everyone wants reward, but it is the RISK that you must pay most attention to. IF price clears 17K, then the low 16K area is the next potential support. IF that level is cleared, then we are looking for the 13,850 area.

The high 13K area serves as an important level because if it is compromised it will prompt us to change our short term outlook to range bound from bullish. This level would also be attractive for position trades (longer time frame investing).

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