Quick summary
Midterm panic sent Bitcoin to $75,600, then straight back to $78,000
A hammer candle sits right on the 50-day support line
Above $78,000, the next target is $80,900, then $81,000
Bitcoin is holding pretty strong, shrugging off the annoying backlash
Bitcoin dropped to $75,600 overnight and a lot of people panicked out. Was that the capitulation?
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Something Big Was About to Happen
On November 3, I said I had this feeling something big was about to happen. It might have happened. Over the midterms, Bitcoin dropped below $76,300 support to around $75,600, then came straight back to $78,000. From there, we outlined $81,000 as the target.
What We Covered
Bitcoin: A hammer candle at the 50-day support line. Above $78,000, the next target is $80,900.
$81,000: The level we really want to get above, then $86,000 to $87,000.
Cup and handle: A handle breakout takes us a minimum of 14%, around $89,000.
Bitcoin vs gold: Still bullish against gold. Watch December 20th.
Nvidia: Bearish at $206. Exit at $213, limit orders at $177 to $183.
Doge vs Pepe: Which to hold? A failed descending wedge. Holding Pepe left you 40% better off.
Hype: Get above resistance, or €68 at a minimum.
Bitcoin is holding pretty strong, shrugging off this wave of annoying backlash.
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Recorded live Nov 4.
FAQ
What level does Bitcoin need to hold?
The support line around $77,000. It’s imperative that we hold this support line. Bitcoin dropped below it to $75,600 and came straight back, and the hammer candle right at that support tells me price might be ready to make a move to the upside. Update, Nov 5: It held. Bitcoin is back above $80,000.
What’s the next upside target for Bitcoin?
If Bitcoin can get above $78,000, the next target is $80,900. Then $81,000 is the level we really want to get above. Hold $81,000 to $82,000, then make its escape for $86,000 to $87,000, and we’ll start getting very bullish for $100,000. Update, Nov 5: Bitcoin got above $78,000 and is trading around $80,400, just under $80,900.
What happens if Bitcoin drops again?
We have our limit orders set out. Limit one was triggered, and we have limit two, limit three and limit four. If the price comes down to those levels, it’s acting normal. And at the back of our minds, we always know there’s the gap between $44,000 and $45,800 that the bears expect Bitcoin to fill.
What’s the plan for Nvidia?
Nvidia is bearish if you ask me. At $206, I expect price will eventually come to $213 to fill the gap, so if you have Nvidia, maybe wait for $213 and then exit. Limit orders sit at $177 to $183, then $146 to $151, then $118. Nvidia only becomes bullish if it gets to $229 and gets back into the ascending wedge. Update, Nov 5: Not yet. Nvidia went down first, closing at $200.13 on Nov 4. Still above limit one.
Disclaimer
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Written by
Andrew Kamsky
Andrew Kamsky is a Bitcoin analyst. He spent a decade in traditional finance across a Big Four firm and a listed fintech bank before going deep on Bitcoin full-time.
