What Will Send Bitcoin To $17k
At the time of writing, the polls are being counted and the country is waiting on a decision. As for prediction markets, Trump has now flipped to being the favorite. This can be due to most toss up states favoring Trump, for the time being. Despite who wins one thing will remain the same… stimulus. This is the only thing that crypto and equity markets care about. Yeah sure, there are tax laws in play which is why the market is favoring a Trump win.
Let me point out a few technical that help paint the picture of what may come, no matter who wins. The first is the build up of momentum as bitcoin has consistently smashed through resistance levels in a short amount of time.
The chart above shows the pass-through of $11.3k, $12.4k then $13.1k in only a matter of weeks. The wall we’re currently facing is $14k as we just retested and failed once again (Nov. 3). Fortunately, once we turn $14.4 into support we’ll have a smooth cruise to $17k as there’s little resistance in-between.
It’s important to note that we’re only talking about bitcoin since the rest of the crypto market is trading in the red. This is due to investors moving to bitcoin as the king regains dominance. The 4-hour chart for bitcoin market cap dominance shows that it’s currently at 64.8%, which has little resistance between 67.8%. This 4.44% would strengthen investor sentiment and bring money waiting on the sidelines to come in.
What if the market flips? What then? Well a bearish scenario would look like this. Bitcoin along with equities would pull back, taking gold and other safe assets with it. The only asset that would grow in strength is the USD. Bitcoin would come back to $13.3k, then $12.8k. If we’re lucky then we stop there, allowing us to close the CME gaps and reset for a stronger rally.
It’s important to be aware that volatility may be high for the next couple of days. Hopefully there is no conflict in solidifying the next presidency so we can go on to focus the problems we have on hand.
*This is not financial advice and should not be taken as such