Bearish Divergence Signals Trouble for Bitcoin’s Election Night Rally

ElzmxjsUYAIY3jI 980x483

Bitcoin retraced its way back to the $14,000-level on US election night as investors pinned hopes on a clear win for Joe Biden. The Democratic nominee promised to launch a vast infrastructural spending program to counter the coronavirus pandemic and its impact on the US economy. One of the primary components of Mr. Biden’s expansionary policy is a fat stimulus aid for American households and businesses that suffered the most during the pandemic-driven economic lockdown. The proposal has reached an impasse in the US Congress for months due to Republicans’ disapproval. Donald Trump administration offered a smaller package. Investors anticipate at least $2 trillion worth of financial aid from the Democratic administration. The Bitcoin Buying Setup, As of Now As more liquidity enters the economy, they also expect the US dollar to continue its decline. The greenback’s plunging purchasing power could lead the “speculative assets” like gold and bitcoin higher…

Read the original article here