It can be said that the year 2020, especially its end, was a good year for Bitcoin in general, largely due to the spread of the Corona virus and the volatility of financial markets.

Bitcoin price After reaching an annual high of about $13,863 on October 28, the price then underwent a sharp correction of about $1,000, to rebound and stabilize at $13,281.

Then the Bitcoin continued to grow and rise slowly to close yesterday, Friday, near $13,680.

Today, October 31, Bitcoin managed to break a new record, reaching $14,100 on the Bitstamp trading platform, which represents a 5% growth in the last 24 hours.

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Bitcoin’s Rise to New Levels:

Bitcoin has been on a bullish streak since March, the month that led financial markets to erase the gains they made over the course of the year.

Bitcoin has not escaped its decline either, as it fell to its lowest level, which it has not recorded since April 2019.

For those traders who use arbitrage and leverage and constantly change positions, things look very rosy for them with a very high accompanying risk as well.

The cryptocurrency respected the upward channel that has been formed since March.

If bitcoin continues in this trend it could be the strongest channel support near $11,500 with significant resistance above $14,500, a level not seen since early 2018, when the bitcoin downtrend started after the 2017 bubble burst.

From a technical point of view, Bitcoin is in overbought territory.

The RSI is above 70 points, so caution is advised in the face of a possible subsequent sell-off.

Market sentiment and announcements from large financial institutions are currently acting as support to continue pushing prices higher.

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For example, as we mentioned in Bitcoin Arabs earlier, “MicroStrategy” raised its investments in Bitcoin to 450 million dollars.

Square also bought $50 million in bitcoin, and PayPal added support for crypto purchases to its services.

This undoubtedly helped boost the confidence of investors who were weary and impatient for two whole years.

The MACD indicator does not give a clear signal to the traders.

However, it does indicate a continuation of the uptrend in the short term, although the convergence between the “short” and “long” lines shows that a natural correction can occur at any time.

Respecting Short Term Boundaries:

In the short term, Bitcoin respected the Fibonacci retracement, as the retracement did not break below the $12,900 support, and both the RSI and MACD are pointing to a possible post-recovery price correction.

The upcoming US presidential election may play a major role in Bitcoin’s behavior in the coming weeks.

There is a general belief that Trump’s victory has an impact on stock markets and vice versa for candidate Biden.

Bitcoin can follow these trends, although there are reports that crypto, in general, is separating itself from any other traditional financial market.

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However, the final change of president in the United States is an event big enough to consider before making any investment.

If things stay in a normal range, bitcoin could hit a new record in the middle of next year.

Bitcoin has never been above $10,000 for that long which it is doing right now, and this is a sign of strength.

The uptrend over the past few months can be seen as the most visible trend since the 2017 bubble.

According to many analysts, the current flow of Bitcoin looks more natural and mature than it was 3 years ago.

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