Bitcoin is surging higher despite uncertainty relating to the election. The leading cryptocurrency currently trades for $14,030, around $700 about the daily lows and around $800 above the week-to-date lows.
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The Importance of $14,000 to Bitcoin’s Bull Case
Analysts see the ongoing breakout as pivotal to the Bitcoin bull case due to the importance of $14,000 to BTC’s macro price action.
Raoul Pal, CEO of Real Vision, shared the chart below on October 27th. “There are literally only two resistances left on the #bitcoin chart – 14,000 and then the old all-time high at 20,000,” he commented on the chart.
As it shows, Bitcoin’s rally in 2019 topped at $14,000 almost perfectly. $14,000 is also the point at which the 2017 yearly candle closed. Due to these two facts, a number of analysts have dubbed $14,000 BTC’s most important level ever.
Pal’s chart indicates that once Bitcoin turns $14,000 into support, the cryptocurrency will rocket towards its previous all-time high of $20,000.
There are literally only two resistances left on the #bitcoin chart – 14,000 and then the old all-time high at 20,000. I fully expect new all-time highs by early next year at the latest.#irresponsiblylong pic.twitter.com/Xhp8qgHrAC
— Raoul Pal (@RaoulGMI) October 27, 2020
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Bitcoin’s ongoing move to the upside is predicated on a drop in the U.S. dollar. In the past 24 hours, the U.S. Dollar Index has dropped by 0.75%, resulting in rallies in gold and in Bitcoin.
Analysts believe this is related to the prospects of fiscal stimulus after the election. A new multi-trillion-dollar fiscal stimulus bill is expected to pass after the election, which should result in a devaluation in the U.S. dollar.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Just Broke $14,000 Again: Here's Why This Is Pivotal For Bulls