Originally published on: November 01, 2024
As the focus shifts to the dwindling winning chances of Donald Trump in the upcoming U.S. presidential elections, Bitcoin’s price has taken a hit. The cryptocurrency saw a decline of over 6.50%, dropping from its recent high of $73,600 to around $69,200 on Nov. 1, with a 4.65% decrease in the last 24 hours.
Speculation suggests that Bitcoin’s fall aligns with the shrinking lead of Trump over Democratic candidate Kamala Harris on various prediction markets. Trump has been seen as a strong proponent of the crypto sector, making Bitcoin a popular choice as a “Trump hedge.”
Noted market analyst HornHairs mentioned that Bitcoin’s price correction today is part of an overbought trend, triggered by the daily relative strength index (RSI) crossing above the 70 threshold on Oct. 29. This could indicate that the recent rally was becoming overheated.
Technical analysis also suggests a bearish pattern in Bitcoin’s price movement, with the cryptocurrency slipping below an ascending wedge’s upper trendline. If Bitcoin breaks below the lower trendline, it could signal potential declines towards the $55,500-$58,000 range in the coming months.
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