Uncertainty about the results of the US presidential election has pushed the cryptocurrency market to grow. Bitcoin soared 8% and broke up the $15K level. Ethereum also demonstrates positive dynamics.
Bitcoin has grown steadily since early September. Then its price was less than $10K, now it is almost $15K. The growth in two months is over 50%. In fact, BTC has hit a two-year high today. The BTC price of $15K was in January 2018, when the crypto market was falling after explosive growth in December 2017. However, the most powerful wave of BTC growth came after the vote in the US presidential elections on November 4. When it became clear that Biden was winning, chaos reigned in the market: large purchases of cryptocurrencies were accompanied by similar large sales. But bulls prevail.
During the day, the volume of trading in cryptocurrencies increased by 45%. Bitcoin Dominance has also grown to 65%. Thus, in a day, BTC broke up through two resistance levels at once, $14K and $14.5K. Therefore, experts propose that the first cryptocurrency will continue to grow to at least $15K. Many analysts are convinced of this, including Aayush Jindal, the well-known author of the NewsBTC portal about bitcoin. He notes that the Relative Strength Index (RSI), a popular rally marker, speaks in favor of continued rise. Now its value exceeds 60 points.
However, the analyst also admits the possibility of bitcoin falling after the announcement of the official election results. In this case, BTC is likely to fall first to the level of $14K, and then to $13.8K.
Popular trader of the Amsterdam Stock Exchange Michael van de Poppe (Crypto Michael) is confident that the rally will continue. At the same time, he declares on his Twitter that Bitcoin and Ethereum are becoming more expensive regardless of the US elections:
Short term, I’m just not seeing a very strong breaker above $14,000 yet.
Still remaining relatively cautious on the markets with all the uncertainties arising.$BTC
— Crypto Michaël (@CryptoMichNL) November 4, 2020
However, the trader warns that according to technical analysis, soon after the rapid growth, Bitcoin will face a sharp drop.
Uncertainty about Bitcoin’s long-term rally is shared by many analysts. A sharp upward movement of the first cryptocurrency may lead to the closure of positions in Bitcoin futures. This can provoke strong fluctuations in the price of BTC. In addition, Biden’s victory by most opinions will lead to a downward correction of BTC.
Meanwhile, ETH proves to be a more reliable currency. In favor of the leading altcoin is the announcement of the Ethereum Foundation about its readiness to activate the zero phase of ETH 2.0 on December 1. ETH started to rise immediately after that. The daily trading volume rose sharply by 18%. A scenario is very likely when players will shift from Bitcoin to Ethereum, as soon as there is clarity with the new US President.