- Bitcoin’s price has been consolidating below its crucial $13,800 resistance over the past week, but bulls are once again in the process of testing this level
- The upcoming election results are widely thought to be a force that could contribute to some BTC volatility
- This possibility is vindicated by the massive inflows of high-leverage orders from traders on margin trading platforms
- These positions being stopped out or liquidated could help fuel a large move in the near-term
- One analyst is noting that a firm break and hold above $13,769 would be incredibly bullish and help lead it to see further upside
Bitcoin is in the process of retesting its key resistance at $13,800, with this level holding strong as a continued resistance level that has been slowing the cryptocurrency’s ascent and catalyzing multiple rejections.
The fact that bears have been unable to spark any sustainable downtrends despite the multiple rejections at this level is a bullish sign.
One trader is now noting that BTC could be on the cusp of closing above a crucial level that could catapult it towards $16,000.
That said, the same trader is also noting that another rejection here could spark a sharp selloff that sends the cryptocurrency reeling lower in the days and weeks ahead. He even notes that a move to $11,900 could be in the cards.
Bitcoin Builds Momentum Heading into the Election
The ongoing U.S. elections have largely been viewed as a catalyst for volatility within the crypto market.
Many believe that the winner will determine the stock market’s fate in the months – and even years – ahead, which could influence Bitcoin.
Investors don’t seem to be too fearful about any turbulence in the global markets following the election, which could mean that it will rally regardless of who wins.
At the time of writing, the cryptocurrency is trading up just over 1% at its current price of $13,720. It is just a hair below its $13,800 resistance.
BTC Could See a Massive Breakout if Bulls Clear $13,770
One trader stated that $13,770 – which is just above Bitcoin’s current price – is the crucial level that bulls need to clear for it to ascend towards its all-time highs.
“Best buy opportunity would be a pullback to ≈ $11942. Resistance to clear $13769. If cleared next resistance @ ≈ $16213,” he said while pointing to the levels marked on the below chart.
Image Courtesy of Wolf. Source: BTCUSD on TradingView.
The coming few hours and days should provide some serious insights into Bitcoin’s mid-term outlook.
Featured image from Unsplash. Charts from TradingView.