- Bitcoin has formed a potential double top at $13,863 on the weekly chart.
- Upcoming US elections could play an essential role in the price action of BTC.
- Iran becomes the first country to use cryptocurrencies at a state level.
Bitcoin has retested the high at $13,863 set in June 2019, potentially forming a double top. The cryptocurrency market is experiencing increased volatility due to the upcoming US elections, as it's not clear who the winner will be.
Let's take a look at some of Bitcoin's most important news this week and how the price has reacted so far. We will deep dive into technical and on-chain indicators to find out the most likely direction of the flagship cryptocurrency.
Bitcoin adoption seems to be growing everyday
On October 29, a report from the Central Bank of Iran (CBI) and the Ministry of Energy stated that Iran would allow national imports to be funded through cryptocurrencies. Citizens of Iran will be able to mine Bitcoin and exchange them as long as they are used to finance imports from other countries.
In order to avoid sanctions on Iran's access to the dollar, the official newspaper of the government suggested using a rate of +1.55% on Bitcoin's price. Iran has recently cut up to 47% off the electricity tariff for authorized cryptocurrency mining centers.
10k Jan21 calls just crossed, looks like a 1x4 32k/36k Call Ratio.
— skew (@skewdotcom) October 30, 2020
Largest listed trade ever on Bitcoin options. pic.twitter.com/TKdYhSPnvw
While the price of Bitcoin remains above $13,000, it seems that institutional interest is growing significantly. On October 30, we saw the largest Bitcoin options trade ever get filled. A recent report shows that calls at $36,000 by January 29, 2021, got up to 8,000, beating the ones at $32,000 by a 4:1 ratio.
However, despite all the positive developments for Bitcoin, the upcoming US presidential election will have a tremendous impact on BTC's volatility. Historically, US presidential elections had fairly identical reactions.
BTC/USD US elections chart
Before the election, in 2012 and 2016, Bitcoin's price plummeted by at least 10% on both occasions. Nonetheless, the flagship cryptocurrency rebound sharply afterward, experiencing two of its most massive rallies so far.
Bitcoin Price Prediction: Can the double top be broken?
The most notable development on the weekly chart is the potential double top established at $13,863. Back on June 24, 2019, Bitcoin's price rose up to $13,868 before a massive 72% correction close to nine months.
BTC/USD weekly chart
However, there are some differences between the high now and the one in June 2019. For instance, the MACD just turned bullish again, and it's gaining momentum while in 2019, it was already really high.
BTC MVRV chart
Additionally, the Market-Value-to-Realized Value (MVRV) is far lower at around 7%, below the danger zone at 19%, compared to 35% in June. Bitcoin is currently bounded inside a weekly uptrend that has a robust support level established at $10,000.
A breakout above the high at $13,863 can drive Bitcoin's price towards $15,000 and potentially higher as there is no resistance above. On the other hand, the confirmation of a double top would be devastating for the flagship cryptocurrency. Moving past the $12,800 support could see BTC price drop to $10,000 in the short-term.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.