Originally published on: November 04, 2024
As Bitcoin experiences a significant 8% correction, dropping to $67,446 over the weekend, investors are bracing for heightened volatility leading up to the US presidential election results on November 5. Despite this pullback, the overall market structure remains bullish for BTC.
Since hitting lows of $52,510 on September 6, Bitcoin has been following a pattern of higher highs and higher lows, consistently retesting the Fibonacci “golden zone” between 0.5 and 0.618 during corrections. Recent price action has shown Bitcoin closing above the 0.618 level, with a potential for a bullish trend continuation if it closes above $68,500 within the next 48 hours.
Anonymous trader Cold Blooder Shiller emphasized the importance of reclaiming the $69,200 level in the short term, while onchain analyst Skew highlighted persistent demand around the $65,000-$66,000 range, which played a crucial role in pushing Bitcoin above $70,000 in October. This area now serves as a key support zone for future bids.
Looking ahead, the $66,000-$67,000 range serves as a critical resistance turned support level, with potential for a V-pattern reversal post-election results. Long-term Bitcoin proponents remain optimistic, with the founder of Capriole Fund pointing out that BTC ETF trends suggest a bullish trajectory regardless of election outcomes.
However, in the event of an unexpected outcome, such as a Harris victory, Bitcoin may see short-term price declines as traders adjust their positions. A retest of $62,000 is possible, given the significant leverage positions in that range. This level coincides with key technical indicators on the daily chart, which could provide a strong support level for Bitcoin.
In conclusion, while short-term volatility is expected surrounding the US elections, the long-term outlook remains positive for Bitcoin. Stay informed by subscribing to our Markets Outlook newsletter for critical insights on investment opportunities and trading strategies. Remember, all investment decisions carry inherent risks, so conduct thorough research before making any moves.
