POST ELECTION - Bitcoin Looking to Break $16,500 in November?

On Nov 7, 2020, Bitcoin soared past $15,500, hitting its highest level since January 2018, fueled by a cocktail of a weak dollar and acute uncertainty over the U.S. political and economic outlook, as reported by The Business Insider. As we prepare ourselves to embrace the next U.S. president, Joe Biden, Bitcoin is expected to reach the target level of $16,500 if the buying momentum from October continues this month.

On the rationale behind the rally of Bitcoin recently, The Business Insider pointed out:

Biden in the White House and a Republican Senate is great for cryptocurrencies, because his presidency would probably drive the dollar lower, according to Bill Noble, a chief technical analyst at Token Metrics.

Meanwhile, Konstantin Anissimov, Executive Director at CEX.IO stated in his recent analysis:

The impressive price action Bitcoin and Ethereum enjoyed throughout October seems to have set up the base for what could be a new bull run in the cryptocurrency market. These cryptocurrencies face little to no resistance ahead from an on-chain metrics perspective. Therefore, there seems to be a lot of room to go up.

A Clean & Sharp Rise

To recap, by Oct 2, Bitcoin went down nearly 4% to hit the lowest price point of the month, at $10,364.

However, a significant number of buy orders were filled around this support level. The spike in demand helped propel prices to $11,736, representing a 13.24% upswing within ten days. Some market participants appear to have taken advantage of the rising price action to realise profits, which caused prices to retreat 4.56%.

By Oct 16, Bitcoin turned around and was trading at about $11,200, providing an opportunity for sidelined investors to get back into the market. Those who bought around this price level saw their investments grew quickly as the bellwether cryptocurrency was on a clean rise throughout the rest of the month.

After bouncing off the $11,200 support level, the well-known cryptocurrency surged by nearly 26% and hit a new yearly high of $14,100 on Oct 31. Bitcoin retraced by 2% to close the month at $13,805 and the fortunate investors were able to take home a monthly return of 28%.

Source: The Business Insider, FXEMPIRE