Bitcoin (BTC) is kicking off a likely hectic week for the markets as the United States embarks on a two-month presidential change.

After Joe Biden was named the expected winner of the US presidential election this weekend, Bitcoin has weakened, but managed to avoid big losses – what next?

Cointelegraph is looking at the decisive factors that will affect the price movement of BTC over the next week.

America’s voting habit is starting to pay off
Washington’s attention remained riveted as the highly conflicting consequences of the elections began to emerge.

Experts have warned that market volatility will be fully guaranteed when the result comes. Since it happened over the weekend, the Wall Street opening on Monday will be a source of interest for market participants.

Japan was the top gainer at press time, with the stock market hitting its highest level in 29 years in what the press calls the “Bidens rebound.”

On the other hand, Bitcoin stopped gaining last week, hitting $ 14,400-1590 from its recent high. Since then, BTC / USD has rebounded significantly, close to $ 15,050 as of Monday’s posting.

Current President Donald Trump has pledged to challenge the vote count and could create more problems for Biden, which could lead to political turmoil that could undermine the mood for now.

However, analysts often argue, when they are downsized, that bitcoin and gold as a safe haven will ultimately win the election, no matter which candidate leads the United States in the future. The reason is, among other things, inflation.

As Cointelegraph reported, in a speech last week by Jerome Powell, chairman of the Federal Reserve, he saw demands for additional financial incentives to enter the US economy, increase debt and lower the value of the dollar.

Michael Sailor, CEO of MicroStrategy, summed up in a tweet on Monday, “Bitcoin is the dominant crypto network designed to house ideal safe assets and conserve monetary energy for an extended period without wasting energy.”

This makes #BTC the solution to the value problem of any investor. Few people understand this. ”
Chaos over coronavirus strangles Europe
The electoral effects are accompanied by constant turmoil over the handling of coronavirus in nation states.

Europe and the United States have recently deviated in this regard, as the former succumbed to a wave of new restrictive measures that have led to significant population declines.

By examining the fast-growing third-quarter recovery statistics, many governments will soon compose a different, less interesting picture of their economies in the fourth quarter, when economic activity slows for the second time in 2020.

This opens up the possibility of history repeating for Bitcoin. After an asset crossover crash and a first close in March, Bitcoin returned from $ 3,600 to get around five digits in less than two months.

When governments themselves repeated the controversial response to the virus, analysts were already expecting Bitcoin to be a good year in 2021. Among them, Real Vision CEO Raoul Ball and Gemini co-founder Tyler Winklevoss have predicted new launch expectations, Cointelegraph reports. The maximum for BTC by the first quarter of next year.

The fear and greed indicator reaches the danger zone
However, in terms of current investor sentiment, when bitcoin stays above $ 15,000, there are warnings.

According to the Crypto Fear & Greed Index, which measures market sentiment using a set of factors, the correction is more than lagging.

Compiled as a marker of 100, the index peaked since June 2019 on Monday, the time that Bitcoin surged to an annual high of $ 13,800.

In comparison, two weeks ago, the index was measured below 60 – a strictly “neutral” zone – before the recent rise in prices strengthened sentiment.

The closer the result is to 100, the more likely it is that the market will correct due to the selling wave and pull the price down.

Citing the index released on Friday, Cointelegraph Markets analyst Michael Van de Pope advised Twitter followers to take a look at the market entry point for just $ 11,600.

On Monday he added “decent weekly close but less than $ 16,000.”

“Levels to look at; $ 13,700-14,100, $ 12,800-13,200 and $ 11,500-12,000 if the market begins to correct. ”
Bitcoin closed on Sunday with the third largest weekly close in history.

Institutions Maintain Long BTC Record
Despite the volatile conditions last week, the weekend managed to avoid the big “gap” that opened the bitcoin futures markets.

These “holes” appear when the price at the end of a futures trading session differs significantly from the price at the beginning of the next session.

Source: CoinTelegraph