Looking at a 2-hour chart of Bitcoin ( BTC ), we see that today's rally has brought Bitcoin ( BTC ) to a resistance point. This resistance comes from a bearish October breaker that represented resistance in October. We also see it as the location of a down trend line drawn off the September highs. In terms of levels, we see real resistance between 8500 on charts and 8700 from Gann's work.

We believe this bounce to resistance may have something to do with two factors. First is an article from a Stanford business school professor saying that crypto will eventually hurt banks enjoying paying customers not interest on deposits. The second is the news that Alexandria Ocasio-Cortez (AOC) endorsed Bernie Sanders for President. This event sets up a ticket with Bernie and Elizabeth Warren. This formidable left-wing duo will no doubt bring a wealth tax to America. While this might make crypto popular with the people, it may make crypto less popular with the government.

Bottom Line: With a 15% spike in one day, we have to take a step back and observe.

DISCLOSURE: Token Metrics is a regular publication of information, analysis and commentary and does not provide individually tailored investment advice.  The Token Metrics team has invested and advised in many blockchain companies. A complete list of the team disclosures, advisory roles and current holdings can be viewed here: https://blog.tokenmetrics.com/disclosures/.