Key Points
- Bitcoin’s price volatility has hit a 3-month high, possibly influenced by the upcoming U.S. elections.
- Increased buying pressure on Bitcoin suggests a potential price hike in the near future.
The upcoming elections in the United States have had varied impacts on different sectors, and the cryptocurrency market is no exception.
Bitcoin Volatility and the U.S. Elections
In the lead up to the election, the volatility of the crypto market has seen a significant increase. The overall crypto market’s volatility reportedly reached a high of 66.7. As usual, Bitcoin (BTC) is at the forefront of this trend, with its volatility reaching a 3-month peak.
An interesting pattern has emerged on the volatility chart, which has been consolidating since July. Currently, Bitcoin’s volatility is testing the resistance of this pattern with a value of 63.72. If the chart surpasses this resistance, investors may witness increased volatility following the election results.
Buying Pressure and Price Hikes
On-chain data analysis reveals that Bitcoin’s exchange reserves are decreasing, indicating a high buying pressure on the coin. This increased buying pressure often leads to price hikes. Over the past 24 hours, Bitcoin has experienced a slight price increase and is currently trading at $68.75k.
However, not all indicators are positive for Bitcoin. More investors are reportedly selling at a profit, which could suggest a market top in the midst of a bull market. Furthermore, the red Coinbase premium suggests that investors are currently hesitant to buy Bitcoin amidst the election buzz.
Despite these factors, the technical indicator MA Cross suggests that the bulls are in the lead, indicating a successful support level test. Therefore, if Bitcoin’s volatility continues to rise, its price may potentially reach $73k again.
Please note, this is not financial advice and it’s always recommended to do your own research.
