Although most investors and traders expect huge volatility during the election period, almost nothing has changed. Bitcoin prices remain relatively stable, hovering below the decisive resistance of $14,000.

At the same time, the price of Bitcoin has been moving along with the stock market in the past 24 hours.

Bitcoin still can’t break the $14,000 resistance level

The weekly chart shows a very healthy line because the price movement appears natural and natural as it continues to test all previous support and resistance levels.

As shown in the figure, this structure is set to $10,000, after which the Bitcoin price rises to the current price level of $13,800.

In this regard, for the market that may see a new support/resistance reversal, the correction in the $11,500 area will be relatively healthy.

At the beginning of the last cycle in 2016, these support/resistance rollovers were quite common.

During the year, there were a large number of buildings in the landfill. This situation continues until the price of a particular asset is discovered, which may lead to a parabolic movement.

The 2016 election also did not show large fluctuations in BTC

Interestingly, Bitcoin’s current growth is similar to 2016. In the weeks leading up to the 2016 election, the U.S. dollar currency index rose sharply. This drop caused the Bitcoin price to rise from $600 to $740, an increase of more than 20%.

However, there was no turbulence in the election itself. As shown by the red vertical line, the election results began to fluctuate after confirmation. The price of Bitcoin has risen by 6% in a few hours, while the U.S. dollar has depreciated.

The main question remains whether the election results will lead to instability if the market catches a breath.

Therefore, like four years ago, after the election results are confirmed, major moves for Bitcoin and the entire market may occur.

The current timetable for preparations for the election is very similar to the actions taken before the 2016 election. A similar decline in the US dollar currency index caused asset prices to rise.

This means that the price of Bitcoin rose from $10,600 to $13,800, a 30% increase in just a few weeks. The main difference now is the stability of the U.S. dollar, while Bitcoin is still solid and growing.

Short-term Bitcoin price scenario

However, the 4-hour chart shows the possibility of a bearish divergence on the chart. Bitcoin prices are often close to the $14,000 mark, and liquidity only exceeds the highest level.

These pimples are not fully functional because they continue to be discarded. In this regard, the determining factor will be the area between $13,850-13,975 when the price continues to rise. If this is not the case, then the potential target is $15,000.

However, if it fails, the test of support at $13,000-13,200 is imminent. As mentioned earlier, further adjustments will not be unhealthy for the market, because it can justify the establishment of a very healthy growth in the bull market cycle.

Time limit for higher Bitcoin prices

The 5-day chart shows the breakthrough in a short period of time. Therefore, if the $13,900 area is still a resistance level, the correction towards the $115,000-11,800 area is not surprising.

Such correction will allow another S/R reversal and squeeze further before the next pulse wave starts.

Once the price of Bitcoin has accumulated and compressed, the process of hitting new all-time highs may be faster than expected.

The views and opinions expressed here only represent the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading action brings risks. When making a decision, you should conduct your own research.

Source: CoinTelegraph

LEAVE A REPLY