Bringing you the daily dose of simple Technical Analysis. Today we see Bitcoin moving in correlation with the market (EURO and US indexes). We have been enjoying an uptrend since March due to the uncertainty coronavirus has brought us. This uptrend has been rather steep earning us about 250% from the bottom of 4000 and also completing the Elliott Triangle pattern(ABCDE).
Given the outlook of the US presidential election, where Biden is most likely to replace Trump as the next POTUS we must begin to prepare Bitcoin losing its value to trade at about sub 10k. Why 10k? Looking at the weekly chart, I look for the pattern where the price revisits most. If I were to separate the chart into bullish and bearish territory, it would be represented by the red line. In my opinion, Biden would probably care less about the stock market and focus on the economy recovery by providing people with jobs and ensure safe working environment. He would probably be more serious in containing covid-19 throughout US and therefore speeding up the prevention measures needed.
Bitcoin in this circumstance would act like an inferior good where consumers purchase more of them when their income decreased. That is the reason why bitcoin manage to rise in value when the stimulus is given. Traders should take this into account, if Biden takes over and begins to readily implement measures to contain the virus and therefore reopen more of the US economy, we should be prepared to sell some BTC off as it continues to descend to sub 10k. From there, it is unknown how bitcoin will again be perceived by the general public in the short run.
The Yellow lines are long term uptrend lines that sometimes can act as good indicator for your orders execution method.
Given the outlook of the US presidential election, where Biden is most likely to replace Trump as the next POTUS we must begin to prepare Bitcoin losing its value to trade at about sub 10k. Why 10k? Looking at the weekly chart, I look for the pattern where the price revisits most. If I were to separate the chart into bullish and bearish territory, it would be represented by the red line. In my opinion, Biden would probably care less about the stock market and focus on the economy recovery by providing people with jobs and ensure safe working environment. He would probably be more serious in containing covid-19 throughout US and therefore speeding up the prevention measures needed.
Bitcoin in this circumstance would act like an inferior good where consumers purchase more of them when their income decreased. That is the reason why bitcoin manage to rise in value when the stimulus is given. Traders should take this into account, if Biden takes over and begins to readily implement measures to contain the virus and therefore reopen more of the US economy, we should be prepared to sell some BTC off as it continues to descend to sub 10k. From there, it is unknown how bitcoin will again be perceived by the general public in the short run.
The Yellow lines are long term uptrend lines that sometimes can act as good indicator for your orders execution method.