Fear, uncertainty and doubt increase volatility, but that doesn’t always lead to a downside. A good example is Bitcoin rising even higher as the whole world is on the edge of its seat waiting to see who wins the presidential race.
With emotions running as high as possible, the cryptocurrency cleared the USD 14,000 resistance with ease, and could be well on its way to retesting USD 20,000 or more at this point.
Bitcoin takes up $ 14,000 after polls complete
Yesterday was Election Day in the United States, and whatever the outcome could determine the future of the world economy, affect the dollar, and have several more critical implications for financial markets for years to come.
With so much at stake and two clearly opposed candidates, investors and the rest of the world, watch and wait for the outcome.
Bitcoin clears $14,000 as the world waits for a President to be chosen | Source: BTCUSD on TradingView.com
The uncertainty surrounding the outcome causes the VIX volatity index to rise and with it the stock market and Bitcoin roar. While volatility and the VIX have been associated with a downside so far in 2020, prices are soaring this time around.
The stock market rebounded hard in the election, while Bitcoin has been trying to move above $ 14,000 for the past week or so – a feat it has just achieved.
Resistance remains above where the last higher low was set before the bear market began | Source: BTCUSD on TradingView.com
The leading cryptocurrency by market cap pushed above the key level for the first time since January 2018 and could aim higher from here.
Bitcoin still needs to clear the above resistance block to hit another test of all-time high, but with the momentum the crypto asset has, the scenario could be the following.
Featured image from Deposit Photos, Charts from TradingView.com