Bitcoin price plunge as Biden wins the US election

Joe Biden won the presidential election in his birth state of Pennsylvania this Saturday and he become 46th president of the United States. The price of Bitcoin (BTC) has weakened from $15 740 below $14 800 in less than several hours and the current price stands around $14 826.

Bitcoin price has weakened after the news that Joe Biden has become the 46th president of the United States. Bitcoin has found strong support above $14 000 and according to some prediction, Bitcoin will surge above $20,000 again. 

Despite this, I feel that the price of this cryptocurrency can weaken in the upcoming days and maybe it is not the best moment to invest in Bitcoin(BTC). The risk/reward ratio is not good currently and my opinion is that there are lots of cryptocurrencies with more opportunity.

Bitcoin is the first cryptocurrency to have existed and receive wide acceptance. Bitcoin can be accessed by everyone on the internet and enjoys the support of both developers and users communities.

A very good team stands behind this project, the fundamentals of this cryptocurrency are improving but there’s still a level of uncertainty for the potential investors. If miners unexpectedly sell a substantial amount of Bitcoin, it could result in an extreme correction as a small price change could provoke liquidations from traders with high leverage.

On this chart, I marked important resistance and support levels. The important support levels are $14 000 and $13 000, $16 000 and $17 000 represent the resistance levels.

If the price jumps above $16 000 it would be a signal to buy Bitcoin (BTC) and we have the open way to $16 500. Short-term traders should always use “stop-loss” and “take profit” orders when they are opening their positions because the risk is extremely high.

Rising above $17 000 supports the continuation of the bullish trend and the next price target could be located around $18 000. On the other side, if the price falls below $14 000 it would be a “sell” signal and we have the open way to $13 000.

Joe Biden won the presidential election in his birth state of Pennsylvania this Saturday and he become 46th president of the United States. He has currently 273 electoral votes which is more than enough to capture the White House and to deny President Trump a second term. Bitcoin price has weakened after the news that Joe Biden has become the 46th president of the United States but as long the price of Bitcoin is above $13 000 this cryptocurrency is not in the “sell” zone.

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