Bitcoin showed signs of renewed bullish upside to come on Nov. 4 as U.S. election hype drew to a close.
Data from price trackers including CoinMarketCap showed BTC/USD putting in another brief appearance above $14,000 overnight on Tuesday.
The move marks the second “wick” in the daily price chart to reach $14,000, but support was yet to materialise at press time.
All eyes on Bitcoin and $14,000 resistance
Markets remained gripped by the U.S. on the day, with a close presidential race between incumbent Donald Trump and challenger Joe Biden yet to show a decisive winner.
“Bitcoin will be the big winner tonight,” Gemini exchange co-founder Tyler Winklevoss tweeted late Tuesday.
Wednesday’s price action meanwhile focused on a corridor below $14,000 with $13,550 as its lower boundary. The results of the election could well have a marked impact on sentiment and volatility, and analysts were waiting for more concrete evidence.
“…Bitcoin starting to look a little bit toppish at this point, given that once again we see a failed breakout above $14K,” trader Michaël van de Poppe said in his latest YouTube update.
Van de Poppe noted that on yearly, monthly and weekly timeframes, the area between $13,700 and $14,200 marks a “heavy resistance zone,” one in place since Bitcoin came down from its 2017 all-time highs.
“…It’s unlikely that there’s going to be a breakout happening in one go given the significance of this resistance zone,” he continued.
“However, at the moment when it breaks through this resistance area, I’m anticipating that we’re going to see a rally towards the all-time highs, and then we’re going to face a big rush.”
Fellow trader Josh Rager meanwhile noted that Monday had produced Bitcoin’s highest daily close since January 13, 2018. Like Van de Poppe, he had previously noted that little stands in the way for Bitcoin to achieve major gains once $14,000 is flipped to firm support.
BTC price 200-week moving average passes $7,000
One section of the community that Bitcoin did not disappoint during the vote was the long-term analytics crowd.
Looking beyond this week, quant analyst PlanB, creator of the stock-to-flow family of Bitcoin price models, reiterated that all was going to plan since May’s block subsidy halving.
Uploading a new price chart, he noted that Bitcoin’s 200-week moving average (200 WMA) was also continuing to grow at the predicted rate of around $200 per month. BTC/USD has never dipped below the 200 WMA.
“200 week moving average is $7065 and increasing at 4% per month .. BTC is slowly moving away from 200WMA, next: green, yellow, orange/red,” he tweeted.
The colors denote the rate of deviation that Bitcoin exhibits versus the 200 WMA, with the forecast calling for increases—and hence price gains—as during the previous two halving cycles.