While most traders were enjoying their Christmas breaks, the value of Bitcoin surged to $28,000 and in the process reset its record high.

Prior to the weekend, BTC was trading around that $24,000 level, which has the prior high, while it rotated in a channel formation. This is typical price action for Bitcoin and sure enough, the break came and price surged higher.

Bitcoin has been on an upward trajectory for a number of months now. After initially getting hit hard by the China virus, along with worldwide equities, price started to rebound over the course of the year.

The moves also come in contrast to what we are seeing in the US Dollar, which has continued to fall. One of the reasons this relationship is important is the belief that the non-stop money printing the Federal Reserve is doing to stimulate the economy, has also debased the value of the Greenback. That means the likes of real assets, such as GOLD and Bitcoin, should theoretically increase in value.

At the same time, the prospect of what lies ahead for the American political landscape is still widely uncertain. The next key date in the election process will be January 6th, when both the House of Representatives and Senate, must vote on the outcome of the election. Given the evidence of voter fraud in the US, there is a strong chance that we will see fireworks here. This unprecedented level of uncertainty, is another catalyst for Bitcoin, as investors try and protect themselves from downside risk and a drawn-out election process.

Technically speaking, price is now knocking on the door of the highs, after the test of $28,000. When price makes fresh highs, we must focus on the round number levels as there is really little else that we can do as this is new ground.