Bitcoin’s monumental rally has taken prices back to those not seen since January 2018, and analysts are eyeing the next levels of resistance should the bulls continue.
Bitcoin prices surged to a whisker below $16,000 a few hours ago during Asian trading and while they have found resistance here, analysts are eyeing the next levels of the next leg up.
The move has added over 12% on the past 24 hours in one of Bitcoin’s largest single-day climb this year. Around $1,500 has been added in less than a day as BTC hits a 33 month high.
Resistance is here at the moment as there were two weekly candles in January 2018 that closed around $16,100. The next stop is $17,200 according to ‘Altcoin Sherpa’ who sees a correction in play first.
“I don’t think that price will break through these areas on the first go; I’m expecting a strong wick followed by some extreme volatile moves down.”
$BTC: I'm expecting price to stall out at one of these areas (if not the current). I don't think that price will break through these areas on the first go; I'm expecting a strong wick followed by some extreme volatile moves down. Looking to buy dips. #Bitcoin pic.twitter.com/MG3mIMx1aM
— Altcoin Sherpa (@AltcoinSherpa) November 6, 2020
U.S. Election Momentum
Momentum appears to be coming from a potentially favorable outcome to the U.S. election results. The counting is still going on but at the time of press, Joe Biden was leading Donald Trump by 264 to 214, needing just another six electoral college votes to seal the victory and win the White House.
Biden has not mentioned the crypto industry much during his campaigning but Trump is clearly against it. His comments in July 2019 have been retweeted across crypto twitter.
“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.”
Trump has always viewed Bitcoin as a threat to the dollar so a more forward thinking U.S. administration when it comes to the digital asset industry would be welcomed by all and this appears to be driving momentum at the moment.
New Bitcoin High by Year-End?
Should Joe Biden win the Presidency, Bitcoin could rally even further, reaching and potentially beating its previous peak of $20k.
BTC is now only 20% away from its all-time high and in previous rallies, it has not taken long to close that gap. Analysts have noted that with the price of Bitcoin being 80% of its all-time high, it has only taken 12 days on average to reach ATH from these levels historically.
UPDATE: Day 692
The price of bitcoin is now 80% of its all time high, the closest it has ever been to full recovery.
Historically, it has taken 12 days on average to go from 80% recovery to full recovery. pic.twitter.com/UqYW4iOUmA
— Yassine Elmandjra (@yassineARK) November 6, 2020
With this in mind, it could well reach a new all-time high before this year is out.
Martin has been writing on cyber security and infotech for two decades. He has previous forex trading experience and has been covering the blockchain and crypto industry since 2017.
