Bitcoin has undergone a strong bounce since the Monday lows of $13,200, set in a rapid crash lower that liquidated millions. The price of the leading cryptocurrency currently is $13,750, up over $500 from the aforementioned lows. On the day, Bitcoin is up 1.5%, outpacing a majority of altcoins including Ethereum but somewhat underperforming the stock market.
This rally in the Bitcoin price comes as the U.S. dollar has continued its descent. The Dollar Index (DXY) has dropped 0.75% in the past day as the market seems to be pricing in further fiscal stimulus after the election takes place.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
Bitcoin Expected to Consolidate Despite Rally
Despite the rally, most analysts seem to think that Bitcoin will spend more time consolidating before moving higher once again.
While Bitcoin recovering to $13,750 after falling to $13,200 may be bullish, signs show that the coin is likely to press lower once again prior to moving higher. Referencing the chart below, one analyst said:
“$BTC looks like it needs to reload. Daily SFP into weekly supply, failed break above 2019 high, bear divs flashing on the daily time frame… Bring on the election dip.”
Chart of BTC's price action since the start of September with an analysis by crypto trader HornHairs (@Cryptohornhairs on Twitter). Source: BTCUSD from TradingView.com
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
The election is expected to drive further uncertainty in the market, especially if the result is contended by either side. There are also fears of a period of civil unrest that could drive further volatility in markets.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Bounces $500 Off Monday Lows Despite Election Uncertainty