Bitcoin has been stronger than I had expected for the past week, partly for the same reason the stock market has shown renewed strength after its decline in September.
The markets are beginning to predict a Joe Biden win and all the government money that will flow from the Democratic spending plans. The financial markets love free money, and the Fed will print trillions more to fund government debt.
As mentioned last week, BTC is bullish above $11,000 but the lack of volume in the past week’s rally is one thing that warns me not to chase the current move higher.
I’m still inclined to believe there will be a larger pullback correction before the market sets up for a stronger rally into next year.
If BTC drops back below $10,500 it would be an indication that the bounce off the early September low is only part of what will become a larger correction to the March-August rally, either as a sideways consolidation or a deeper pullback.
For now it remains a toss-up as we head toward Election Day.
As much as I’d love to see a strong rally from here, our monthly contribution plan would benefit nicely with a pullback before the end of the month.
Regardless, it’s a price-agnostic investment plan so continue your regular contribution no matter what the market is doing.
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