On the afternoon of October 31, the price of Bitcoin on almost all exchanges briefly rose above the mark of $14,000, exceeding the price level of the summer of 2019. The first cryptocurrency was previously above this mark at the beginning of January 2018. The next major resistance level will likely be the all-time high of 2017, standing at $ 20,000.
Despite this rise, Bitcoin bulls have their reasons to not be overconfident – in the short term, the bull run on the record hights looks rather uncertain. Although it updated the three-year high, BTC failed to gain a solid foothold above this psychological turning point and it “rolled back” to $13,800. Trade volumes for the day were also not too impressive. The US presidential elections, whose results will be known no sooner than November 4, also prompt increased volatility.
However, when it comes to the long-term outlook, the prospects of Bitcoin remain bright. The second wave of the COVID-19 pandemic is pushing central banks to double-down on financial injections into the economy. Regardless of who becomes the next US president, the Federal Reserve is likely to continue the policy of low-interest rates and fiat currency emissions. This is an important positive factor for all investment assets, especially gold and Bitcoin.
