Bitcoin Price Above $14K Now Similar to $700 Scenario amid 2016 U.S….
Analysts anticipate Bitcoin and markets to experience the big moves after the confirmation of election results, just as it happened four years ago.
Bitcoin has seen less price volatility in both the 2016 and 2020 U.S. election. History has actually repeated itself as Bitcoin broke the major multi-year resistance of $14K just recently.
Most investors and traders had expected massive volatility to take place through the voting hours, but only little occurred as it hovered under $14k. However, Bitcoin’s price moved in tandem with equity markets and breached the crucial $14,000 resistance just as the polls were about to close.
Bitcoin Volatility Wasn’t High during Pre-2016 Election Period
The current runner-up of Bitcoin resembles the one that existed in the 2016 election period. In the weeks preceding that election, a substantial drop occurred in the U.S. Dollar Currency Index, causing Bitcoin’s price to rally more than 20%, thereby running from $600 to $740.
During the actual election, volatility was not much, but it started to kick off after the confirmation of election results. In a few hours after the U.S. Dollar showed weakness, the price of Bitcoin moved by 6%.
Impressively, the current pre-election trend seems to resemble the pre-election movements that occurred in 2016. Prices of assets seem to be pushed up by somehow a similar U.S. Dollar Currency Index drop. In just a matter of weeks, BTC price has rallied 30% as it increased from $10,600 to $13,800. The U.S. Dollar stabilization is the primary factor causing the significant difference as Bitcoin resiliently continues its uptick momentum.
$15,000 as a Potential Target
Analysts anticipate Bitcoin and markets to experience the big moves after the confirmation of election results, just as it happened four years ago. So, they are keenly watching to see how much volatility will occur after election results even as the markets stay still.
Bitcoin price has exhibited bearish divergence taking liquidity at a new high as it surpassed the $14,000 barrier. Since BTC has already breached the hard area between $13,850-13,975, it now has the synergy to target $15,000.
A correction to the $11,500-11,800 area earlier speculated by various analysts appears it wouldn’t happen since the $13,900 area is no longer a resistance. If that were to happen, further compression and another support/resistance flip would occur before BTC realizes its next impulse wave. Therefore, new all-time highs may come much quicker once accumulation and compression are over in the price of Bitcoin.
BTC Rose Significantly over a Few Years
As of press time, BTC was trading at $14,444, representing a rise of almost 1,900% in a period of four years and around 140,000% in the past eight years. Crypto influencer ‘The Crypto Lark’ told the daily candle that this was the first time since January 2018 that BTC had closed over $14,000. Even more interesting is that in a span of one week, BTC has surpassed the $14,000 barrier twice.
The price rise is also partly attributed to several non-political factors, including PayPal‘s decision to enter the crypto market, increased social media engagement, as well as increasing institutional interest. In October, Bitcoin mentioning tweets volume rose by 15% to reach 835,000 according to The Tie’s weekly report. The analytics platform also noted that BTC had realized more positive returns in October as it gained 30% compared to Ether (ETH) that had 10% returns.
Ballot counting across the U.S. is ongoing, and many await to see how volatile the cryptocurrencies and the stock market will become.
Source: Read Full Article