- Bitcoin volatility hit a three-month high on the charts
- Buying pressure on the currency increased, indicating that the price would soon rise
As Election Day approaches in the United States, different industries have responded differently. And crypto wasn’t isolated from it either.
In fact, thanks to the same Bitcoins [BTC] Price volatility reached a three-month high. Hence the question: will this have a broader impact on the crypto market?
US elections affecting crypto?
Crypto market volatility started to rise before the US election date. AMBCrypto discovered that the entire crypto market inconstancy skyrocketed, reaching 66.7 at the time of writing. As expected, Bitcoin led this changing trend, with BTC volatility hitting a three-month high.
The interesting thing here was that a pattern appeared on the volatility chart. To be precise, the pattern appeared in July and since then the volatility chart has been consolidating into it.
At the time of writing, BTC’s volatility was testing the pattern’s resistance as it was at 63.72. If the chart rises above resistance, investors may see more volatility after the election results.
Source: TradingView
In addition, AMBCrypto also found that liquidations in the crypto market were increasing.
The good news was that in the case of Bitcoin, most of these liquidations came from long positions – a bullish sign. This was the case because more long positions indicated greater bullish sentiment in the market.
Source: cryptometer
Will BTC’s Rising Volatility Push the Stock Up?
As BTC volatility increases, AMBCrypto checked the King Coin’s on-chain data to find out whether the outcome of this development will bring investors a profit or force them into losses. Our analysis of CryptoQuant’s facts revealed that BTC’s foreign exchange reserves have fallen, meaning buying pressure on the coin was high.
An increase in purchasing pressure usually translates into price increases. In the last 24 hours alone, BTC witnessed a marginal price increase, and it did trade for $68.75k.
However, not everything worked in favor of the king’s coin. BTC’s aSORP showed that more investors sold at a profit. In the middle of a bull market, this could indicate a market top.
Furthermore, amid the ongoing buzz surrounding the US elections, investors are not considering buying BTC, evidenced by the red Coinbase bounty.
Source: CryptoQuant
Finally, we checked BTC’s daily chart to better understand what to expect. According to our analysis, BTC appeared to be testing a support level.
Read Bitcoin (BTC) price prediction 2024-25
The technical indicator MA Cross suggested the bulls were in the lead, indicating a successful trial. Therefore, if BTC’s volatility increases even further, the price could move towards $73,000 again.
Source: TradingView