Bitcoin price is down slightly as traders wait for the official results of the American election. The currency is trading at $13,700, which is slightly below yesterday’s high of $14,093. Ethereum, Ripple, and Bitcoin cash are trading at $380, $0.24, and $237, respectively.
Yesterday, Bitcoin price rallied as traders refocused on the US election and the overall weaker US dollar. Indeed, the dollar index fell by more than 0.75% yesterday, in part because the market was waiting for a clear victory by Joe Biden.
Today, the dollar index is up by more than 0.50% because investors have started pricing-in a victory by Donald Trump. As of this writing, Joe Biden has won 238 votes while Donald Trump has 213 votes. However, as shown below, Trump is leading in most of the remaining pivotal states.
As such, Bitcoin price is probably falling because of the inverse relationship it has with the US dollar.
Still, Bitcoin bulls are optimistic that the price will resume the upward trend. Indeed, the amount of open interest in the futures market has continued to rise. Indeed, according to Decrypt, open interest in futures tied to BTC is regularly hitting $45 billion per day. Although the futures market is relatively small, investors believe that it is sending a picture of more demand of the digital currency.
Bitcoin price technical outlook
On the weekly chart, we see that Bitcoin price has been in a strong upward trend since March this year. The price is slightly below the 78.6% Fibonacci retracement level, in a signal that bulls are in control. It is also slightly above the 50-day and 25-day moving averages.
Most importantly, it is attempting to move above the important resistance at $13,878. It also seems to be forming a cup and handle pattern.
Therefore, in the near term, I suspect that bulls will clear the current resistance as they target $15,000. To do this, it will need to have a power move above $13,878.
On the flip side, a move below the 50% retracement at $10,000 will invalidate this trend.
BTCUSD technical chart