Key Points
- Bitcoin’s price is retesting a vital support range between $68K and $69K after significant bullish momentum.
- Bitcoin price may experience high volatility due to the upcoming US 2024 elections and potential macro bullish breakout.
After reaching near its all-time high last week, the price of Bitcoin is currently retesting a key support range between $68K and $69K. The leading cryptocurrency has seen significant bullish momentum since the August 5 crypto crash, particularly after invalidating the macro-falling logarithmic falling trend.
On a daily timeframe, Bitcoin’s price has been forming higher highs and higher lows, a typical characteristic of a rising market trend. As long as Bitcoin’s price remains above July’s peak of about $68K, the macro bullish sentiment will dominate.
Technical Analysis and Market Sentiment
From a technical analysis perspective, Bitcoin’s price is on the brink of a major bullish uproar after consolidating for the past eight months. If Bitcoin’s price consistently falls below the support level of around $58k, which has been strongly held since early March this year, the macro bullish sentiment will be delayed or invalidated.
After indicating a potential macro bullish breakout recently, Bitcoin’s price is at a critical point that will lead to high volatility in the near term. Furthermore, the Gold price has continued to print new all-time highs in the weekly timeframe, signaling a similar pattern for Bitcoin.
Impact of US 2024 Elections
The US 2024 elections concluding in the next two days will determine the administration for the next four years. Some Wall Street analysts predict that Bitcoin and the entire crypto market will continue to grow regardless of the election outcome. However, a different group has favored the Republicans led by Donald Trump.
Trump has made several promises to the crypto market if he is elected. Among them, he has mentioned that he will replace SEC Chair Gary Gensler with a person friendly to web3.
In the coming days, Bitcoin’s price is also expected to experience increased volatility amid the anticipated Federal Reserve rate cut. The chances of the Federal Reserve initiating another rate cut before the end of this year have significantly increased, with other major jurisdictions, including Canada and Europe, following the same path.
Meanwhile, Bitcoin’s price has greatly benefited from the significant demand from institutional investors led by US spot BTC ETF issuers. By the end of the first week of November, the US spot Bitcoin ETFs, led by BlackRock’s IBIT, registered a net cash inflow of over $2.2 billion, the highest since March.
As a result, the US spot Bitcoin ETFs now hold assets under management (AUM) of about $69 billion, led by IBIT with around $30 billion.
