As the U.S. 2024 elections gain momentum, significant attention has been focused on the financial markets, particularly on Bitcoin (BTC). Despite the excitement surrounding pro-crypto presidential candidate Donald Trump, who currently leads in major polls, Bitcoin’s price has displayed signs of short-term bearish sentiment. Over the past week, Bitcoin has dipped over 4% to hover just above the critical support level of approximately $68.5k as of Tuesday, November 5, during the early New York session.
Current Market Overview
Bitcoin’s price trajectory has shifted from a bullish outlook at the end of October to a bearish start in November. Historical data indicates that Bitcoin tends to experience more bearish trends in November and December compared to other months over the past six years.
Why Bitcoin Investors Are Derisking
After Bitcoin retested its all-time high in late October, surpassing $73k, it has been caught in a downward trend. A decline in demand for Bitcoin is evident through the substantial cash outflows from US spot BTC ETFs. Recent data reveals that on Monday, these ETFs faced the largest cash outflows since early May, amounting to approximately $541 million. The looming uncertainties due to the U.S. elections are likely to increase crypto volatility, causing investors to remain cautious.
In anticipation of these events, many investors are seeking safer havens, turning their attention to the stablecoins market. This shift is also influenced by expectations that the Bank of England and the Federal Reserve will announce another rate cut on Thursday to bolster economic growth.
Midterm Targets for BTC Price
Popular crypto analyst Ali Martinez has noted that Bitcoin is currently testing a significant 1-hour falling logarithmic trend that has developed in recent days. After being rejected five times recently, Martinez suggests that Bitcoin may continue to decline towards a support level above $66k in the coming days.
Conversely, crypto critic Peter Schiff has warned investors about a potential sell-the-news scenario following the U.S. election. However, the bearish outlook could be overturned if Bitcoin manages to sustain a price above $71k consistently.
Conclusion
As the U.S. 2024 elections unfold, Bitcoin’s price is subject to various influences ranging from political developments to economic policies. Investors should remain vigilant and adapt their strategies in response to these dynamic market conditions. Understanding the factors driving Bitcoin’s current trend and potential future movements is crucial for making informed investment decisions.
