Bitcoin entered November 2020 on a cautious note, trading around $13,820 after a weekend pump that pushed the cryptocurrency against its stubborn $13,800 resistance level. The broader crypto market watched closely as the upcoming United States presidential election loomed over all risk assets, creating an atmosphere of heightened volatility and uncertainty.
TL;DR
- Bitcoin trading at approximately $13,820, struggling to break above $13,800 resistance
- Ethereum holding at $396 with modest 24-hour gains of 2.53%
- Crypto analyst identifies four bearish factors including stock market weakness and US election uncertainty
- DeFi sector hit particularly hard while Bitcoin rallies independently
- Total crypto market capitalization concentrated in Bitcoin at $254.5 billion
Bitcoin’s Battle at the $13,800 Level
Throughout late October and into the first day of November, Bitcoin had been locked in a consolidation phase, with buyers and sellers reaching a clear impasse. The cryptocurrency surged as high as $14,100 earlier in the week but was rapidly rejected at that level, sending the price back down to the $13,800 zone where it continued to trade.
According to CoinMarketCap data from November 1, 2020, Bitcoin held a market capitalization of $254.5 billion with a circulating supply of approximately 18.53 million BTC. The 24-hour trading volume reached an impressive $24.45 billion, reflecting intense market activity as traders positioned themselves ahead of the US election on November 3.
The monthly close for October had been strong, with Bitcoin posting gains that exceeded many analysts expectations. However, the failure to sustain momentum above $14,000 raised questions about whether the rally had enough fuel to continue into November without a pullback.
Four Bearish Signals Emerge
A cryptocurrency analyst known as Mayne outlined four specific reasons for taking a cautious short position on Bitcoin heading into the first full week of November: multiple failed drives into major resistance, weakness in traditional equity markets, the US presidential election scheduled for early in the week, and the US Dollar Index sitting on key support levels.
The analyst emphasized that the overall thesis remained bullish despite the short-term bearish positioning, suggesting that a healthy correction could provide a better entry point for the next leg up.
The US Dollar Index, or DXY, was a particularly important factor. When the dollar strengthens, risk assets like Bitcoin typically face selling pressure. With the DXY resting on historical support, any bounce in the dollar could trigger a Bitcoin selloff.
DeFi Sector Takes a Beating
While Bitcoin rallied throughout October, the broader altcoin market and particularly the decentralized finance (DeFi) sector suffered significant losses. Bitcoin was effectively sucking the oxygen out of the crypto market, drawing capital away from smaller tokens as investors sought the relative safety of the largest cryptocurrency.
Ethereum, the backbone of the DeFi ecosystem, was trading at $396.36 with a market cap of $44.9 billion. While ETH posted a respectable 2.53% gain over 24 hours, the weekly chart showed a decline of 2.43%, underscoring the divergence between Bitcoin and the rest of the market.
Major DeFi tokens fared even worse. Chainlink, ranked sixth by market cap at $4.5 billion with a token price of $11.54, was down 5.13% on the week. The broader DeFi pulse showed consistent outflows as Bitcoin dominance climbed.
Top 10 Crypto Market Snapshot
- Bitcoin (BTC): $13,737 — Market cap $254.5B
- Ethereum (ETH): $396.36 — Market cap $44.9B
- Tether (USDT): $1.00 — Market cap $16.7B
- XRP: $0.2398 — Market cap $10.9B
- Bitcoin Cash (BCH): $267.56 — Market cap $5.0B
- Chainlink (LINK): $11.54 — Market cap $4.5B
- Binance Coin (BNB): $28.46 — Market cap $4.1B
- Litecoin (LTC): $55.59 — Market cap $3.7B
- Polkadot (DOT): $4.23 — Market cap $3.6B
- Bitcoin SV (BSV): $164.64 — Market cap $3.1B
Polkadot appearance in the top 10 was notable, as the relatively new project had quickly attracted significant capital, signaling growing interest in interoperability-focused blockchain platforms.
Why This Matters
The tension at $13,800 represented more than just a technical level — it was a psychological battleground. Bitcoin had not traded above $14,000 since the bull market peak of 2017, and a decisive break would have signaled a new era for the cryptocurrency. The US election added a layer of macroeconomic uncertainty that made traders reluctant to commit heavily in either direction.
Looking back, November 2020 would prove to be one of the most consequential months in Bitcoin history. Within weeks of this stalemate, BTC would break free from its consolidation and embark on a historic rally from approximately $13,700 to an all-time high above $64,000 by April 2021 — a nearly 370% surge in under six months. The election week uncertainty that kept traders cautious would quickly dissolve into one of the most powerful bull runs the crypto market had ever seen.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.
$13,800 was resistance for weeks. once it broke after the election btc never looked back. classic breakout setup
the four bearish factors that analyst called out were all invalidated within a month. btc was at $20k by december
that 13.8k level was such a ceiling. once election results came in and it broke, the move to 20k was basically a straight line
13k_resistance that level held for weeks. the breakout candle after election night was one of the cleanest I have ever seen on BTC weekly
resistance_breaker that breakout candle was textbook. clean break of 13.8k on election night volume and then straight to 20k. charts like that dont happen often
it felt like a ceiling forever. I remember people calling 14k the local top and getting laughed at for suggesting 20k by december
Mei L. people calling 14k the top after a 100% run from 7k was peak sentiment indicator. same energy as the 69k top callers in 2021
the breakout from 13.8k was textbook. election uncertainty cleared and institutions stepped in. $20k felt inevitable once that level broke
chart_nerd_ once 13.8k broke the move to 20k was basically a straight line. election night was the best buy signal of the cycle
the weekly chart was screaming accumulation for weeks before the breakout. anyone who waited for confirmation still got in under 16k
defi getting crushed while btc rallied independently was the theme of late 2020. eth bagholders were suffering while btc maxis partied
ETH at 396 while BTC rallied was painful. defi summer was over but eth holders kept waiting for the rotation that took months
ETH holders were suffering but the rotation did come eventually. took until january 2021 though. patience in crypto is measured in years not weeks
four bearish factors called out and BTC was at $20k within 6 weeks. election uncertainty was the buy signal everyone missed
blk_horizon_ every bearish analyst call during a BTC consolidation is just exit liquidity for smarter money. the chart was screaming accumulation
blk_horizon_ four bearish factors and BTC was at 20k six weeks later. classic wall of worry climb. sentiment is always wrong at major lows
ETH at 396 while BTC broke out. held through that pain for 2 months then altseason printed. patience rewarded or just lucky, who knows
Petr H. held through that 396 ETH pain too. felt like BTC was leaving us behind but january altseason made it all worth it. patience or luck who knows
ETH at $396 while BTC broke out was the final shakeout before altseason. anyone who held through that rotation made life changing money
rotation_player ETH at $396 during the BTC breakout was the most painful hold. then january 2021 happened and the rotation trade printed for months
ETH at 396 while BTC broke out was the most painful 60 days. then january came and the altseason print started
$254.5B total market cap feels adorable now. we were so early even at 14k it was a rounding error vs today
254.5B total crypto market cap feels like a typo now. we were buying the future at a discount and thought it was expensive
254.5B total market cap and we thought it was expensive. BTC alone is worth more than 10x that now. wild how perspective shifts in one cycle
four bearish factors listed and BTC was at 20k six weeks later. wall of worry climbs are the most reliable pattern in crypto. sentiment at 14k was somehow bearish
macro_fade_ ETH at 396 during that breakout was painful patience. held through november feeling like an idiot then january altseason hit. same cycle every time