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Bitcoin Breaks $14K As US Elections Results Incoming: New 2020 High Or Bearish Double-Top? (Price Analysis)

After breaking June 2019’s 15-month high just four days ago, Bitcoin is getting closer to the hot zone once again, seeking a new high since January 2018.

As of writing these lines, the first U.S. elections results are incoming shortly, and so far, Bitcoin is repeating its behavior from four years ago – surging 3% over the past 24 hours.

Currently, Bitcoin is trading around the $14K mark, after increasing over $400 in the past two hours alone.

Same Set-up As Of Elections 2016?

The U.S elections data is only starting to accumulate, and we already see what was expected – that the most volatile asset will justify its title.

As a reminder, in 2016, as Donald Trump got elected, the Bitcoin price surged while the Asian stock markets crashed. Now the situation is different; however, volatility to both sides can be expected.

From the bullish side, we can see on the following daily chart that almost every candle over the past week is carrying a huge ‘wick.’ This means that the buyers are buying every single price dip.

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On the other hand, the RSI indicator is still showing bearish divergence on the daily timeframe. In the following shorter-term chart (the 4-hour), we can see that the divergence is slowly invalidating.

Besides, the $13,800 – $14,000 zone is the last significant barrier of the sellers. This contains the previous June 2019 high ($13,870) and the monthly close from the 2017 bubble peak – December 2017 and January 2018. So far, Bitcoin got rejected once (Saturday).

BTC Support and Resistance Levels To Watch

The first resistance is the current level between $14,000 and $14,100. This is the previous 1000-day high that was set last Saturday.

In case Bitcoin breaks up, there is not much resistance above until the all-time high, since Bitcoin was trading above that range for only numerous days.

If we look for resistance areas, we can see that $14,500 can be the first level of resistance (the marked ascending trend-line), before the psychological level at $15,000.

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From the bearish side, failure to break the $14,100 high can set a double-top bearish formation. The first major support now lies around $13,800 – $13,870 (previous resistance), followed by the marked lower ascending trend-line (~$13,350). Further below lies the $12,800 support area.

Total Market Cap: $409 billion

Bitcoin Market Cap: $259 billion

BTC Dominance Index: 63.4%

*Data by CoinGecko

BTC/USD BitStamp 1-Day Chart

Bitcoin Breaks $14K As US Elections Results Incoming: New 2020 High Or Bearish Double-Top? (Price Analysis)

BTC/USD BitStamp 4-Hour Chart

Bitcoin Breaks $14K As US Elections Results Incoming: New 2020 High Or Bearish Double-Top? (Price Analysis)

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