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Bitcoin,  Markets Report

Markets Report: Bitcoin races to $14,900 as election mania grips markets

Fresh progress sees BTC/USD approach $15,000, but technical hurdles mean price action may soon pause, one analyst says

Bitcoin crossed $14,900 on November 5 as markets worldwide gained on the prospect of an incoming US election result. 

Data from price tickers including CoinMarketCap revealed another day of major successes for Bitcoin, with daily gains topping 7.5%.

At press time, the largest cryptocurrency hovered around $14,850, having risen somewhat unexpectedly to beat $14,400 and $14,500 resistance over the past 24 hours. 

Perhaps unsurprisingly, some well-known industry faces were more bullish than ever on price prospects. For Real Vision CEO Raoul Pal, the situation was reminiscent of late 2016, just before the bull market which took BTC/USD to its $20,000 all-time highs one year later. 

As such, despite the recent gains, Bitcoin’s journey this time around was just beginning, he argued. 

“The action hasn’t even started yet. You definitely aren’t long enough,” he summarized on Twitter.

Markets were broadly buoyed by US events, which centered on election controversy balanced by the increasing likelihood of a Democrat presidency. The S&P 500 was up 2.2% on the day, while gold also benefited. 

Analysts focus on new all-time high in Q1 2021

Within trading circles, even more conservative traders were also coming round to the idea that mid-term performance for Bitcoin would be stronger than forecast. 

For Michaël van de Poppe, Pal’s idea of a new all-time high coming in the first quarter of 2021 also rang true. He warned, however, that progress would take the form of a series of peaks and troughs on the way up. 

“It’s intriguing that accounts shout that $BTC has an easy ride from here towards $20K. I don’t see that happening in one go. Sideways, corrective movements would fuel an even stronger move,” he tweeted on Thursday. 

“New ATH Q1 2021 most likely.”

Fellow trader Josh Rager was characteristically hopeful, noting the relative calm with which Bitcoin was eclipsing multiyear resistance levels. 

“Again Bitcoin printing higher-highs on the daily at over $14,000. Yet it seems like it’s doing so without much excitement,” he wrote on Twitter. 

“Could be the election distraction but it doesn’t seem like many realize how big this is. Send it straight over $16k and maybe that will wake a few up.”

Incoming resistance may “pause” gains

Those hoping for daily candles of thousands of dollars may have to wait, however. Tempering the excitement was Philip Swift, creator of monitoring resource Look Into Bitcoin, who highlighted an incoming resistance level putting the breaks on the speed of the current rally.

“Price has raced up and is now approaching the first resistance area of the 350dma x 1.6 (green line),” he wrote, uploading an accompanying price chart.  

“I expect that to be at least a pause point for Bitcoin. Golden Ratio Multiplier is great for identifying overextended periods in Bitcoin bull markets.”

markets report bitcoin price
Philip Swift’s Bitcoin price chart with resistance levels highlighted. Source: Philip Swift/ Twitter

Investor sentiment was meanwhile entering the “greed” phase, signalling increased likelihood of a price correction, according to the Crypto Fear & Greed Index. Drawing on a basket of factors, the Index recorded a score of 72/100 on Thursday, just 12 points off the 2020 peak which subsequently saw a reversal away from $12,000.

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Anthony Bevan is a journalist focusing on disruptive finance and cryptocurrency, along with the changing face of the market as Bitcoin gains mainstream adoption. Journalists covering cryptocurrency for Modern Consensus May hold positions in some of the currencies they write about.