With Bitcoins price recently cracking $14,000 levels, many traders are looking for additional upside based on current technicals. Why is BTC still flashing bullish sentiment in the short term?
Bitcoins Price
At the time of this reporting, Bitcoins price is currently hovering around $14,000 . Over the last week, the worlds largest digital asset by market cap has seen +5.76% growth. If we look at the digital asset on a year to date basis, Bitcoin has rallied +96% YTD. You can not find any other asset class across the globe with these types of returns. With election uncertainty creating a lot of volatility in traditional markets, BTC has been less affected, with bulls maintaining control. During the last week, here is how Bitcoin has stacked up against large-cap altcoins:
- Bitcoin: +5.76%
- Ethereum: +3.17%
- XRP: -4.54%
- Bitcoin Cash: -12.57%
- Chainlink: -10.48%
Bitcoin Technical Analysis
In a previous report, it was outlined that Bitcoins price was building up significant momentum after breaching a 2 year resistance level. Just two weeks ago, BTC surpassed $12,000 levels, and has already surged to $14,000. This just goes to show how important the resistance levels were just a short couple weeks ago. Our original analysis showed that based on the current technicals, Bitcoin was in a prime position to retest $15,800 resistance levels. Based on recent price action, this looks like it could very well come to fruition.
If we take a look at the updated chart, BTC is threatening to retest $15,800 resistance levels. Bulls have continued to push momentum to the north. We can also assess momentum by looking at ROC ( rate of change ) indicators. At the bottom of the chart, the ROC is trending above 0.00 which denotes bullish momentum. On the 5 year chart, the ROC setup looks extremely bullish right now.
Why Bitcoin Could Rally Even More On The Election
With the 2020 Presidential Election tightening up, it is becoming evident that Joe Biden could potentially be the next President. In recent analysis, it was believed that Bitcoin could experience a stronger rally under Biden. The reason for this is because the US Dollar is expected to weaken under a Biden administration based on higher taxation and tariff rollbacks on China.
At the time of this report, Biden has 238 electoral votes, and Trump has 213, with votes still being counted in important regions. The market is seeing a dollar that is experiencing consistent weakness. With election uncertainties, and even potential lawsuits, the Dollar is expected to see higher amounts of volatility. Bitcoin continues to have an inverse relationship with the Dollar, and thrives in these environments based on historical price action.
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