Mr. Wood
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- Oct 4, 2013
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Week Ahead: 2021 Starts with a Bang
January 3, 2021 2:19 AM
January 3, 2021 2:19 AM
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Bitcoin has turned parabolic, and it seems nothing can stop it. Price rose above the 161.8% Fibonacci extension from the December 2017 highs to the December 2018 lows, near the psychological resistance area at 30,000. The next target area of the move is near 36,200, which is the height of the price move during that time period, added to the breakout area at 19,668. There are many reasons for BTC/USD to pull back, but traders should be weary to jumping in front of a runaway train speeding towards you. First support is at 30,000 followed by last weeks highs of 28,377. Also note that the RSI is at its highest levels ever, 93.18, however overbought can always become more overbought! Although Bitcoin is rocketing higher, traders should be reminded how quickly it sold off from 19,680 to 5,920 in January/February 2018 after a similar move in December 2017.



