While the United States is going on with the 2020 Presidential Election, a vast cryptocurrency value fluctuation is being experienced.
When the sell-off commenced, the benchmark cryptocurrency was valued at $13,605. Bitcoin bulls have been attempting to break above $10,000 for a long while now. Bulls have tried to break above $9,939 unsuccessfully after several attempts.
The pattern worked, triggering flipping directions for the cryptocurrency. And now, as it goes into the US session, its chances of moving further down are rising. The explanation for this is the mystery surrounding the US presidential election.
Biden, Bill, Bitcoin
Suggestion polls show that former Vice President Joe Biden will win the White House, and Democrats will assume the dominant party in the US Congress. The assumptions make the second coronavirus stimulus package more likely to be approved by lawmakers to raise economic activity across the US.
A stimulus plan for Bitcoin acts as a bullish catalyst. In the long term, the possibility of more US dollar liquidity entering the economy will decrease the buying power of the greenback among investors. As a consequence, they hedge the properties they consider as their assets.
Bitcoin appeared in 2020 as a hedging tool for gold and government bonds. After the announcement of the first coronavirus relief help, the index has risen by more than 200%.
Near-term Bearish Bias
The expectations that Joe Biden will win the elections are well expressed in the US stock market S&P 500 has recorded up 1.20% index increased after the opening bell on Tuesday.
Also, traders are raising proposals for Gold, a traditional hedging resource, expecting that Mr Biden’s win will release a liberal help (with a baseline at $2 trillion).
Nevertheless, so far in the Tuesday session, Bitcoin does not represent any of those bullish responses. Part of the explanation may be the recent upward trajectory of the cryptocurrency, whereby a three-year peak above $14,000 was retouched.
Conversely, holding support above $13,463 raises the potential for the cryptocurrency to break above the Falling Trendline. Such a step, all over again, will change the upside target to $14,000.
Bitcoin traders are more cautiously following the US election than conventional investors, at best. Boom if, without cracking a sweat, Joe Biden or Donald Trump wins. Bust, if either loses, but we have to pause till the last vote is counted.