Bitcoin has shot up like nobody’s business. At press time, the currency is trading for well over $13,700, the highest it’s been in roughly three years, and the currency is now just a few steps away from $14,000. This is an exciting time for bitcoin enthusiasts, especially considering many analysts still believe it could spike even further and that the asset is outdoing stocks and neighboring investments.
Bitcoin Shoots Up Once Again
Fairlead Strategies founder Katie Stockton has mentioned in a recent interview:
Bitcoin has seen short term momentum improve within its long-term uptrend and has a good amount of room to resistance, which is close to about $14,000.
However, there are some industry experts out there that are concerned about the world of bitcoin options, which could potentially force a pullback here and there for the bitcoin price within the next few days or weeks. Roughly 60,000 bitcoin options expired on Friday, October 30. These options were worth approximately $750 million at the time of writing, and it is believed that this could potentially send a temporary shock through the crypto space.
The good news is that options’ popularity has exploded this year, with the space now equaling roughly $2.5 billion at press time. Still, people like Simon Peters of e-Toro fame are concerned that the present circumstances surrounding the expiring options could potentially lead to temporary damage.
Some momentum technical indicators are still flagging the bitcoin price as being somewhat overbought. I wouldn’t be surprised to see a pullback, hopefully staying above $13,000. If bitcoin dipped below the $12,000 resistance level we saw previously, I would be happy to see it hold as support.
Bitcoin has experienced its best month in a long time. Following a rather bearish September, the currency jumped into the $11,000 range and then $12,000, where it stayed for some time before shooting up more than $1,000. It has since meandered throughout the $13,000 space while gaining bits of momentum here and there to eventually reach its present position.
Granted the currency can retain this present speed and strength, there’s no reason $14,000 can’t be in bitcoin’s immediate future. The news of bitcoin’s meteoric rise also comes at a time when equity markets are suffering heavily and when coronavirus cases are allegedly surging like they never have before in both the United States and Europe.
Stocks fell more than three percent earlier in the week, and with the upcoming presidential election set to occur roughly two days from now, one can’t help but wonder what will happen to the world’s leading digital currency by market cap.
Could All This Affect the Outcome?
Jim Cramer of CNBC commented:
I think there’s going to be a call for lockdowns the likes of which we’ve seen in Chicago… lockdowns without stimulus equals what we’re seeing.