As we approach the eagerly anticipated 2024 United States presidential election, the financial markets are experiencing significant waves of volatility. Notably, the price of Bitcoin (BTC) has seen a decline of around 2 percent, settling at approximately $67,848 during the early Asian trading session on Tuesday, November 4. This fluctuation comes after Bitcoin faced rejection near its all-time high of roughly $73.3k in recent days, prompting a retest of a crucial support level that hovers above July’s peak.
The Current Technical Outlook for Bitcoin
Despite this market correction, the technical analysis of Bitcoin reveals a promising bullish outlook. On a daily timeframe, Bitcoin has been consistently forming higher highs and higher lows. This pattern is a classic indicator of a rising market trend, suggesting potential growth in the near future.
Factors Contributing to Bitcoin’s Price Decline
The recent drop in Bitcoin’s price can be attributed to a significant selloff by whale investors. Current market data reveals that U.S. spot BTC ETF issuers have reported their first net cash outflows after seven consecutive days of substantial cash inflows, exceeding $2.2 billion. On Monday, led by Fidelity’s FBTC, these issuers recorded a net cash outflow of over $579 million. Furthermore, Bitcoin’s fear and greed index has decreased from 77 to 70 percent in the last 24 hours, yet investor sentiment remains skewed towards greed.
Anticipating Bitcoin’s Short-Term Performance
Historically, Bitcoin’s price has exhibited high volatility during the last three U.S. elections, although the overall trend has remained bullish. The prominence of cryptocurrency as a key issue in the 2024 U.S. elections suggests that Bitcoin is likely to regain its bullish momentum in the near term. Wall Street analysts maintain a positive outlook for Bitcoin’s price trajectory, irrespective of the presidential election outcome. However, within the crypto community, there is notable support for Republican candidate Donald Trump.
Should a bullish rebound occur, Bitcoin is projected to achieve a short-term target ranging from $78k to $84k. This target aligns with the daily 1.618 and 2.618 Fibonacci Extension levels, reinforcing the technical analysis perspective.
Conclusion
In summary, while Bitcoin’s price is currently experiencing a dip amid the political climate, the long-term technical indicators suggest a favorable outlook. As the 2024 U.S. presidential election approaches, investors and analysts alike are keeping a close watch on the market dynamics. Understanding the influence of political events on cryptocurrency markets will be crucial in navigating the upcoming financial landscape.
