It can be said that the year 2020, especially its end, was a good year for Bitcoin in general, due largely to the spread of the Corona virus and the volatility of financial markets.
Bitcoin price After reaching an annual high of about $ 13,863 on October 28, the price underwent a sharp correction of about $ 1,000, and the currency rebounded again and settled at $ 13,281.
Bitcoin then continued to slowly grow and rise to close on Friday around $ 13,680.
Today, October 31, Bitcoin broke a new record, reaching a price of $ 14,100 on the Bitstamp trading platform, which represents 5% growth in the last 24 hours.
Bitcoin ascent to new levels:
Bitcoin has been in a bullish streak since March, the month that financial markets erased the gains they made throughout the year.
Bitcoin did not escape the decline either, as it fell to its lowest level, which it had not recorded since April 2019.
For those traders who use arbitrage and leverage and change positions constantly, things look very rosy for them with very high concomitant risk as well.
The cryptocurrency respected the bullish channel that had formed since March.
If Bitcoin continues this trend, it could be the strongest support in the channel near $ 11,500 with significant resistance above $ 14,500, a level we have not seen since early 2018, when Bitcoin's downtrend began after the 2017 bubble burst.
From a technical point of view, Bitcoin is in the overbought zone.
The RSI is above 70 points, so caution is advised in the face of potential future sell-offs.
Market sentiment and announcements from large financial institutions are now supporting the continued pushing prices up.
For example, and as we mentioned in Bitcoin Arabs earlier, “MicroStrategy” increased its investment in Bitcoin to $ 450 million.
Square also bought $ 50 million in Bitcoin, and PayPal added support for the purchase of cryptocurrencies to its services.
This undoubtedly helped boost the confidence of investors who had grown tired and impatient for an entire two years.
The MACD indicator does not give a clear signal to traders.
Nevertheless, it indicates the continuation of the uptrend in the short term, although the convergence of the “short” and “long” lines shows that a natural correction could occur at any time.
Respecting short-term boundaries:
In the short term, Bitcoin respected Fibonacci retracements, as corrections did not break below the support of $ 12,900, and both the RSI and MACD are indicating a possible price correction after the recovery.
The imminence of the US presidential election may play a major role in Bitcoin's behavior in the coming weeks.
There is a general belief that the victory of "Trump" has an effect on the stock markets, and vice versa for Biden.
Bitcoin can follow these trends, although there are reports that crypto is, in general, separating itself from any other traditional financial market.
However, the final change of president in the United States is an event large enough to consider before making any investment.
If things remain in normal range, Bitcoin could reach a new record high in the middle of next year.
Bitcoin has never been above $ 10,000 for a long time which it is doing at the moment, which is a sign of strength.
The upward trend over the past few months can be considered the most visible trend since the 2017 bubble.
According to many analysts, the current flow of Bitcoin appears to be more natural and mature than it was 3 years ago.
Very informative article Dear