While most investors and traders expected tremendous volatility during election hours, little has happened. Bitcoin’s price is still relatively stable and it is hovering below the crucial USD 14,000 resistance.
At the same time, the price of Bitcoin move with the stock markets in the last 24 hours.
Bitcoin still cannot break the USD 14,000 resistance
The weekly chart shows a very healthy line-up as the price moves look natural and organic by testing all previous support and resistance levels before continuing.
As the chart shows, this structure was established with the USD 10,000 level, after which the price of Bitcoin rose to the current price level of USD 13,800.
In that regard, a correction to the USD 11,500 region would be relatively healthy for the markets, which could see a fresh turn of support / resistance.
These support / resistance flips are quite common, as they were at the beginning of the previous cycle in 2016.
During this year, a significant number of range-bound constructions were seen. This happens until the price of a particular asset goes into price discovery, resulting in possible parabolic movements.
The 2016 election didn’t see much BTC volatility either
An interesting perspective is that Bitcoin’s current run-up is similar to that of 2016. In the weeks leading up to the 2016 election, the US Dollar Currency Index fell significantly. This drop caused the price of Bitcoin to move from $ 600 to $ 740, an increase of more than 20%.
However, not much volatility occurred during the election itself. Volatility started to pick up when the election results were confirmed, as the vertical red line shows. Bitcoin price moved 6% in a few hours while the US dollar weakened.
The primary question remains whether election results will lead to volatility when markets hold their breath.
Therefore, the big moves for Bitcoin and markets in general could happen after the election results are confirmed, similar to four years ago.
The current primaries chart is very similar to pre-election movements in 2016. A similar decline in the US Dollar Currency Index has pushed up asset prices.
This meant a rise in the price per Bitcoin from $ 10,600 to $ 13,800, a 30% increase in just a few weeks. The significant difference is currently the stabilization of the US dollar, while Bitcoin is still resilient and continues its upward momentum.
Short term scenario for Bitcoin price
However, the 4-hour chart shows the possibility of bearish divergence on the charts. Bitcoin’s price often pushes towards the $ 14,000 barrier, with liquidity only tipping above the high.
These pimples don’t quite show their strength as they are being rejected. In that regard, the crucial breaker would be the area between $ 13,850-13,975 for any continuation of the price. Failing that, there is a potential $ 15,000 goal on the table.
However, if it fails, a $ 13,000-13,200 range support test seems inevitable. As discussed previously, a further correction would not be unhealthy for the markets, as it could justify a very healthy build-up of the bull cycle itself.
Scenario with a higher timeframe for the price of Bitcoin
The 5-day chart shows a likely scenario in the event of a breakdown in a shorter time frame. So, if the USD 13,900 area persists as a resistance, a correction towards the USD 11,500-11,800 area should come as no surprise.
Such a correction would allow for one more support / resistance flip and further compression before the next impulse wave can begin.
Once Bitcoin’s price has completed with the accumulation and compression, a shot to new all-time highs can come faster than expected.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the view of Cointelegraph. Every investment and every trade move carries risks. You should do your own research when making a decision.