How Will Bitcoin React To UK Election 2019?

The EUR/USD forex pair has once again rallied past the 1.0762 resistance turned support. It is now trading well above the 38.2% fib level and eyes the 1.11782 level to potentially make a triple top. So far, this has not had any impact on the cryptocurrency market. This wild move in EUR/USD seems to be a result of speculation surrounding one of the most important UK elections in decades. The outcome of this result will strong impact stock and currency markets across the globe. For now, the probability of something unexpected seems low as the Conservative party is still in the lead. However, if something extraordinary happens, we could see extreme volatility in the EUR/USD forex pair and therefore the cryptocurrency market as well.

It is important to note that GBP/USD, which is the forex pair that has reacted most strongly to Brexit related news hasn’t budged much for the past few days. It has been trading sideways mostly because this election seems to be a non-event for now as far as the markets are concerned. It will clear uncertainties and pave the way for markets doing what they were expected to do anyway. However, an unexpected result of the election could soon change things. This does not have to be the Conservative party losing the election, it could be a hung parliament again. The S&P 500 (SPX) has just made a new all-time high and if the Tories end up winning, we could see the stock market rally continue for the foreseeable future.

The near-term outlook of the cryptocurrency market seems unaffected by these developments so far. Bitcoin (BTC) is expected to test the $7,447 level before the next decline. Meanwhile, ETH/USD is ready to rally towards the $148 mark having found support on the 61.8% fib level. All of these developments mean that if the Tory lead continues, we could expect nothing out of the ordinary in the cryptocurrency market. Bitcoin (BTC) still risks a major downtrend after a potential retest of the $7,447. The Donchian channel on the 4H chart for BTC/USD on the Crypto Daily Charting Platform indicates that the price could end up rallying towards $7,336 before the next move downwards. Considering that the Fear and Greed Index is already at “extreme fear” we believe that there might be opportunities to be bullish near-term but the fact that BTCUSDLongs has just made a new all-time high suggests that chasing any bullish move would not be worth the risk/reward at this point.