While most investors and traders anticipated massive volatility to occur through the election hours, little has happened. Bitcoin’s price is still relatively stable and hovering under the crucial resistance of $14,000.
At the same time, Bitcoin’s price has been moving in tandem with equity markets over the past 24 hours.
Bitcoin still can’t break the $14,000 resistance
The weekly chart is showing a very healthy setup as the price movements look natural and organic via testing every previous support and resistance levels before continuation occurs.
As the chart shows, this structure has been established with the $10,000 level, after which the price of Bitcoin rallied towards the current price levels of $13,800.
In that regard, a correction towards the $11,500 region would be relatively healthy for the markets, which could see another support/resistance flip.
These support/resistance flips are quite common, as they also occurred at the start of the previous cycle in 2016.
During this year, a significant number of range-bound constructions were seen. This occurs until the price of a certain asset enters price discovery, resulting in possible parabolic movements.
2016 election also didn’t see much BTC volatility
An interesting perspective is that the current run-up of Bitcoin is similar to the one in 2016. In the weeks before the election of 2016, the U.S. Dollar Currency Index dropped substantially. This drop caused the price of Bitcoin to run from $600 to $740, a rally of more than 20%.
However, not much volatility occurred during the election itself. The volatility started to kick off when the election results were confirmed as the vertical red line shows. The price of Bitcoin moved by 6% in a few hours while the U.S. Dollar showed weakness.
The primary question will remain whether the election results will trigger volatility as the…