• Patrick Maldonado

News Recap: Bitcoin’s Last Bearish Resistance

Over the past weeks, Bitcoin has tried to break the last bearish resistance around $13,500 – $14,000. If Bitcoin is able to overcome this area, chances of reaching its all-time highs increase by a lot!

Bitcoin Hits $14,000 Exactly 12 Years After Whitepaper

On October 31st, Bitcoin reached and surpassed $14,000. During the same day in 2008, Satoshi Nakamoto released his Bitcoin white paper. Ever since its release, Bitcoin has seen an exponential growth in market capitalization.

In retrospect, this makes the third post-halving cycle as being profitable from a price perspective. Even though there are multiple factors that might have lead to this point, historically halvings have had a positive impact on the price action.

Bank of America Predicts a 2’% Stock Market Crash

As tensions rise due to the US election and uncertainty hits the market, Bank of America (BofA) suggests a 20% drop is possible. Even though the correlation between Bitcoin and traditional markets has decreased in recent weeks, it is possible that the price is affected as investors run away from risk-on assets.

According to BofA economists, the election results are not the biggest threat to equities. The biggest threat is the uncertainty that the elections are bringing to the table. It is possible that after emotions settle down, the market rallies despite a clear Trump or Biden win. Once again, psychology demonstrates to be a key indicator of where the market price might go.

Bitcoins’ Last Major Hurdle before $20,000

The last major area of resistance for Bitcoin lies between $13,500-$14,250. If Bitcoin is able to break this last cluster of resistance, we could expect the price to reach all-time highs as there are no major resistances above this price action.

Even though this sounds bullish in principle, it is important to notice that this move comes at the same time where the dollar is signaling a potential reversal. Bitcoin has been inversely correlated to the dollar currency index, thus, an increase in the strength of the dollar might put an end to Bitcoin’s momentum in the short term.

Whale Alert – User Moves $1.1 Billion in Bitcoin

According to on-chain data, an anonymous Bitcoin holder transferred more than 88,857 BTC worth around $1.15 Billion. It is remarkable that this was done for a fee of only 0.00027847 BTC or nearly $3.58 at the time it happened. The coins were confirmed later in block 645,364 on October 26.

It is highlighted that this is the largest movement of any Bitcoin transaction by fiat value. The second largest was set by Bitfinex after it transferred 161,500 BTC which was worth around $1.1 Billion at that time.

More about the author:

Patrick Maldonado is a Market Analyst at Alphachain Capital.

LinkedIn: https://www.linkedin.com/in/patrick-maldonado/

5 views

To view our full Terms & Conditions click here.

Disclaimer:

By trading with securities you are taking a high degree of risk. You can lose all of your invested money. You should start trading only if you are aware of this risk. Alphachain Academy doe not provide any specific investment advice, we are an trader education company. All information provided on this site is intended solely for the study purposes related to trading on financial markets and does not serve in any way as a specific investment recommendation, business recommendation, investment opportunity analysis or similar general recommendation regarding the trading of investment instruments. 

HQ - 43 Berkeley Square, Mayfair, London, W1J 5AP

020 7097 3984

Join our Telegram group for Market Commentary: 

Follow us on Social Media: 

  • Facebook - White Circle
  • Twitter - White Circle
  • LinkedIn - White Circle
  • Instagram - White Circle
  • White YouTube Icon

©2020 by Alphachain Capital.