Bitcoin ($BTC) is up 1.5% so far on a long-awaited US election day. However, after being definitively rejected from the all-time high only last week, Bitcoin bulls have a lot to do to bring the price back up again. If Donald Trump wins the election their job will be much easier, and if Kamala Harris wins, stand by for a lot more turbulence.
It’s not just the American people that are biting their nails on this election result, it’s the population of the whole world. Although, it could be argued that if either of them win, an almost impossible economic situation will still await that victor.
Eleventh hour polls show swing back to Trump
As far as the polls are concerned, it appears that there has been a small swing back towards Trump and the republicans at the eleventh hour. Polymarket has Trump up 61.7% to Harris 38.4%, while the traditional polls, despite giving an overall even picture, have Trump up in every swing State again, according to AtlasIntel, which was the most accurate pollster in the 2020 election.
Potentially choppy time ahead for Bitcoin
For the crypto sector, things would appear to be looking slightly more favourable, although this election is likely to provide many twists and turns yet. At least one of the results could even be a week away from being called, so if things do go down to the wire, there could be quite a few uncomfortable days to come.
During this time, the Bitcoin price will probably chop around, and the altcoins could continue to bleed out until that all-important moment of certainty when the overall result is called.
$BTC still getting rejected from descending trendline
Source: TradingView
The short-term price chart for $BTC shows that there are still difficult times ahead for the king of the cryptocurrencies. The decline since the price almost reached the all-time high is ongoing, with yet another rejection of the descending trendline and the major horizontal resistance of $69,000.
The price has been down to test the deepest Fibonacci level of 0.786, so Bitcoin bulls would hope that the price is able to continue its bounce from there. If this Fibonacci level is lost, $66,000 is a good horizontal support level, and below this is the descending trendline of the top of the bull flag, which would also provide support.
2-week chart looks more benign for $BTC price
Source: TradingView
The 1-week chart shows a very ugly-looking candle wick to the upside last week, that depicts strong selling as the price neared the all-time high. However, on the 2-week chart, things do look a bit more benign. The long candle wick to the upside is still there, and the candle body did still close below the major $69,000 horizontal resistance, but looking at the candle in its entirety, it is all about indecision, whereby the wick to the upside is about the same length as the downside wick, signifying a fierce and equal battle between buyers and sellers.
While the indecision candle can signify the top or bottom of a trend, it can also lead to a continuation of the trend. In this case, this would be upwards.
One other sign in Bitcoin’s favour is the Stochastic RSI for the 2-week chart. The indicators have passed the 25.00 level and are still angled up. This should signal that large upward price momentum is pushing the price higher. Until such time as these indicators roll over and cross back down, this is a very bullish signal.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
