Key Points
- Bitcoin’s price volatility has hit a 3-month high amidst the U.S. election.
- Buying pressure on Bitcoin has increased, suggesting a potential price hike.
The upcoming U.S. election has had varied impacts across different sectors, and the crypto market is no exception.
In particular, the price volatility of Bitcoin (BTC) has reached a 3-month high. This raises questions about the broader implications for the crypto market.
U.S Elections and Crypto Market
The crypto market’s volatility has escalated in anticipation of the U.S. election results. Market data shows that the overall crypto market’s volatility has risen to 66.7. Bitcoin is leading this trend, with its volatility reaching a 3-month high.
An interesting pattern has emerged on the volatility chart, which started in July. Currently, Bitcoin’s volatility is testing the resistance of this pattern. If the chart surpasses this resistance, investors could see increased volatility following the election results.
In addition to this, liquidations in the crypto market have also increased. However, for Bitcoin, the majority of these liquidations are from long positions, indicating a bullish sentiment in the market.
Bitcoin’s Rising Volatility
With Bitcoin’s volatility on the rise, analysis of on-chain data was conducted to predict whether this would result in profit or loss for investors. The analysis revealed that Bitcoin’s exchange reserves are decreasing, implying an increase in buying pressure on the coin.
An increase in buying pressure typically leads to price hikes. In the last 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 have been selling at a profit, which can signal a market top during a bull market. Furthermore, amidst the U.S. election buzz, investors seem hesitant to buy Bitcoin, as evidenced by the red Coinbase premium.
Upon examining Bitcoin’s daily chart, it appears that the coin is testing a support level. The technical indicator MA Cross suggests that the bulls are leading, indicating a successful test. Therefore, if Bitcoin’s volatility continues to rise, its price might move towards $73k again.