While a large part of the financial markets falter within hours of the election results being published, the crypto market does not want to follow this trend, and nothing has yet been affected by the great uncertainty that exists.
Bitcoin after hitting a yearly high of $ 14,100, has been resting in a small low-volume compression; and although it is very likely that he is about to correct, at the moment he does not want to do it. A BTC correction would undoubtedly affect the entire ecosystem.
Here is a general technical review, to analyze the investor sentiment of the crypto market prior to the election results.
Dollar index tries to recover, but still not very strong
Following the markets crash in March, Bitcoin began to gain correlation with traditional assets, especially negative correlation against the dollar.
Thus, it is common for us to see how when the dollar strengthens, Bitcoin falls back and vice versa.
However, the last bullish momentum of BTC, was not in correlation with the traditional markets. Instead, it was the consequence of strong institutions that enter this cryptocurrency with capital in search of shelter.
This does not mean that the correlation has been lost, and it is likely that in a sharp fluctuation of the markets in general it will also affect crypto.
During the past week when the main stock indices fell, the dollar took some strength, managing to break some resistance of the short-term trend.
Although that bullish intention remains, it is still not enough. For it to be, the DXY must go through resistance at 94.5 points.
It’s really hard to know if that short-term dollar strength scenario is the most likely at this time of uncertainty, but if it did happen, it would undoubtedly be affecting the crypto market.
Even the major trends of the dollar are bearish, and these always have more relevance over the small ones, such as the one we have been observing.
Crypto Week: Highs for Bitcoin, Euphoria and Controversy
Bitcoin maintains profits and does not allow crypto market to falter before elections
The behavior of BTC during October was magnificent. The price closed the month at $ 13,791, being held back by a very relevant monthly resistance, one that was manufactured with the all-time high of 2020, and which also hampered the bullish rally of 2019.
In general, the historical uptrend of Bitcoin should not worry you at this level, but without a doubt the current moment may be marked by fatigue right in the resistance zone where it is located.
It is relevant to note that this is the last resistance observed in the monthly chart. Upwards the space is totally clear literally up to the moon.
In the daily time frame we observe how the price has been slowing down the acceleration lately, locking itself in a small compression with an upward direction.
As we discussed in a post yesterday, it is quite likely that a correction is about to start, but it is not to be expected that there will be many pullbacks left before effectively breaking the bordering barrier at $ 13,500.
The short-term trend of BTC is still bullish, and to be violated the support at $ 12,900 must be crossed, which warns of a correction that is already quite necessary at the current point. As long as this does not happen, the odds remain on the bullish side.
The daily chart of ETH vs USDT we see how the elections still do not worry the altcoins of the crypto market.
Ethereum’s short-term uptrend despite being challenged, has yet to be breached. In case of being broken, the price would again enter a lateral range between $ 385 and support at $ 310.
Even if ETH is seen in a short-term bear market, the support at $ 310 would continue to defend medium-term bullish expectations.
One of the largest in the crypto market that has been the most bearish in recent days is XRP.
At the point it is at, an increase in volatility prior to the elections capable of negatively affecting the markets, could seriously affect Ripple, since its medium-term trend tends to be one thread, and that thread is at $ 0. , 23100.
At the moment, the odds for XRP continue to rise, and the first relevant hurdle to overcome is at 0.2538.
All our publications are informative in nature, so in no case should they be followed as investment advice.