Bitcoin reached highs of $15,968 and appears poised for another peak at the weekly close
Bitcoin has steadily gained value against the US dollar, rising above $15,000 in the past 24 hours to reach an intraday high of $15,968.
This impressive rally is unfolding despite uncertainty surrounding the 2020 US presidential election. Vote counts indicate Joe Biden is on track to win against the incumbent Donald Trump, who has alleged fraud in key swing states.
Wall Street has advanced amid expectations of a divided US Congress, which analysts say could limit excessive government borrowing. According to Reuters, such a split would likely restrain large-scale fiscal expansion and might increase pressure for additional monetary stimulus.
The Dow Jones Industrial Average and the S&P 500 both rose nearly 2% to 28,390 and 3,510 points respectively, while Bitcoin gained more than 12% in the last 24 hours.
BTC/USD firmly above $15,500
Early Friday Asian trading saw Bitcoin reach $15,968, bringing it close to the $16,000 level. Overall it has been a strong day for BTC/USD, with the price trading above $15,700. Over the week Bitcoin climbed more than 17%, adding roughly $2,000 in value against the US dollar.
On-chain analytics provider Skew Analytics estimates the probability of BTC/USD surpassing $20,000 by December 31, 2020, at around 14% based on current prices. Roughly a month ago, the odds of a run toward the 2017 high were noticeably lower—nearly 80% less than they are now.
Bitcoin’s technical outlook
From a technical perspective Bitcoin looks stretched, with the RSI trading north of 80. Still, interest in the asset shows few signs of cooling: entities holding between 100 and 1,000 coins have increased their holdings to 13,990 distinct addresses.
That increased buyer pressure helped BTC/USD break above a weekly range that had been capped by the $12,000 resistance level earlier last month. As the weekly chart below illustrates, the cryptocurrency has been printing higher highs and appears to be gathering momentum heading into the weekend.
If bulls can secure a higher daily close, a stronger weekly close would be an encouraging sign and could set the stage for a meaningful run toward a new all-time high.
On the downside, the simple 100-hour moving average at $14,111 provides support, where buyers appear to be defending the market. Should prices dip further, the 100-hour SMA on the four-hour chart near $13,433 is likely to absorb additional selling pressure.