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While most investors and traders anticipated enormous volatility during election hours, little has happened. Bitcoin’s price remains relatively stable and remains below the crucial $ 14,000 resistance.
At the same time, the price of Bitcoin has moved in tandem with the equity markets over the past 24 hours.
Bitcoin still fails to break through the $ 14,000 resistance
The weekly chart shows a very healthy setup as price movements appear natural and organic by testing all previous support and resistance levels before continuation occurs.
As the graph shows, This structure was established at the $ 10,000 level, after which Bitcoin’s price rose towards the current $ 13,800 price levels.
In this regard, a correction towards the $ 11,500 region would be relatively healthy for the markets, which could see another shift from support to resistance.
These changes from support to resistance are quite common, as they also occurred at the beginning of the previous cycle in 2016.
During this year, a significant number of buildings of rank have been observed. This occurs until the price of a particular asset enters the pricing, resulting in possible parabolic movements.
The 2016 election also didn’t see much volatility from BTC
An interesting perspective is that the current evolution of Bitcoin is similar to that of 2016. In the weeks leading up to the 2016 election, the US dollar currency index fell sharply. This drop sent Bitcoin’s price from $ 600 to $ 740, a rally of more than 20%.
However, there wasn’t much volatility during the election itself. Volatility began to skyrocket as the election results were confirmed, as shown by the vertical red line. The price of Bitcoin moved 6% within hours as the US dollar showed weakness.
The main question will remain whether the election results cause volatility as long as the markets hold their breath.
Therefore, Big moves for Bitcoin and markets in general could occur after the election results are confirmed in a similar fashion to four years ago.
The current pre-election chart shows many similarities to the 2016 pre-election moves. A similar decline in the US dollar currency index has pushed asset prices higher.
This meant a rise in the price for Bitcoin from $ 10,600 to $ 13,800, a 30% increase in just a few weeks. The significant difference currently is the stabilization of the US dollar, while Bitcoin remains resilient and continues its upward momentum.
Short-term scenario for the price of Bitcoin
However, the 4-hour chart shows the possibility of an emerging bearish divergence on the charts. Bitcoin’s price has often pushed towards the $ 14,000 barrier, simply by pushing liquidity above the maximum.
These sprouts do not show their full strength, as they continue to be rejected. In this sense, the deciding factor would be the area between $ 13,850-13,975 for any continuation of the price. If that breaks down, a potential $ 15,000 goal is well below means.
However, if it doesn’t stop, a test of the $ 13,000-13,200 range support seems inevitable. As discussed above, further correction would not be harmful to the markets as it can justify very healthy growth for the bull cycle itself.
Long-term scenario for the price of Bitcoin
The 5-day chart shows a likely scenario in the event of an outage of the shorter time frame. Therefore, If the $ 13,900 area continues to hold, a correction to the $ 11,500-11,800 area would come as no surprise.
Such a correction would ensure another change from support to resistance and further compression before the next impulse wave can begin.
Once the price of Bitcoin is finished with accumulation and compression, an opportunity towards new all-time highs could come faster than expected.
The views and opinions expressed herein are solely those of Author and do not necessarily reflect the views of Cointelegraph. Every investment and trade move carries a risk. You should do your research when making a decision.
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