Analyses

Novogratz: "Less fiscal, more Fed, good for crypto" – Price Analysis, 9 Nov 2020

The 2020 US presidential election took place on Tuesday, November 3rd. Joe Biden has been elected the 46th president of the United States. He is expected to ask the former chairman of the Commodity Futures Trading Commission (CFTC) Gary Gensler to advise the presidential team on plans for Wall Street oversight, according to the Wall Street Journal.

The crypto community welcomed the news because Gensler is considered to be crypto-friendly. For example, last year, in a review for CoinDesk, the former head of the CFTC underlined the potential of blockchain technology as a catalyst for real changes in the financial sector.

Crypto investor and enthusiast Mike Novogratz published a tweet in which he wrote that the election of Biden is good news for Bitcoin. He added that the fiscal policy would be less stringent and the Federal Reserve System is going to keep printing money:

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Source: Twitter

Bitcoin bull PlanB reassured the crypto community once again that he remains extremely bullish on BTC. He reiterated that, according to the stock-to-flow model, Bitcoin would tap $100K-288K before December 2021: 

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Source: Twitter

Besides the presidential election, another intriguing event in the crypto world was an update on the progress in the Ethereum ecosystem towards ETH 2.0. On Twitter, Vitalik Buterin announced the release of the ETH 2.0 deposit contract:

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Source: Twitter

Last week has been one of the most positive ones for Bitcoin for the last couple of months. The cryptocurrency increased from €11,365 up to €13,525, thus, marking the highest level since January 2018.

Now, the crypto market is consolidating. At the time of writing, according to Coin360.com, one Bitcoin costs €12,930.16 (+1.98%), one Ethereum – €380.78 (+1.65%), and one LINK – €10.67 (+1.95%):

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Source: Coin360.com (Daily crypto market performance)

Now let's analyze the price charts of the top cryptocurrencies against the euro.

BTC/EUR

In the weekly time frame (1W), the price chart of BTC/EUR is approaching the 73.4 Fibonacci retracement level or €13,638 per one digital coin:

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The sequence of weekly bullish candlesticks with ascending local highs and ascending local lows continues – an indicator that the bullish sentiment prevails. That's why we think that BTC will reach the 73.4 Fibonacci retracement level and may even try to surpass it.

In case of a price pullback, the closest support is at the 61.8 Fibonacci retracement level or €11,565.

ETH/EUR

In the 4-hour chart (4H), Ethereum has drawn an Ascending Broadening Wedge:

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Theoretically, the Ascending Broadening Wedge is a technical pattern that tends to appear in a bull market and is considered to be a bearish chart pattern, suggesting an exit from the wedge in the downward direction.

However, we estimate that soon ETH/EUR will continue to fluctuate within the trajectory of the wedge, and we don't see any bearish signal. In our view, the upper line of the wedge will serve as a resistance line and the lower line of the wedge – as a support line.

LINK/EUR

In the 1-hour chart (1H), LINK/EUR moves upwards within the Ascending channel (uptrend) slowly, but steadily:

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So, the question is: "How to trade ascending channels?" Let us share with you what traders do when such kind of technical patterns appear in the price charts.

Traders wait for the price chart to drop to the lower line of the channel (support line):

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If the price rebounds from the support, they open a long position with a stop-loss below the support line or below the last local low. As a take-profit, traders set levels close to the latest local high or even close to the resistance line.

Traders will continue to apply this strategy until the trend breaks and closes their positions at stop-loss.

Stay updated on everything Bitcoin-related with Bitvalex. Bitvalex is a licensed digital wallet and cryptocurrency exchange; learn more about us and blockchain technology and sign up to use our services.

The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.


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