As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed several bull and bear cycles. The current situation with Bitcoin (BTC) seems to be leaning towards the latter, and here’s why.
On October 29, the price of Bitcoin (BTC) reached an impressive $73,681 on the Bybit exchange, falling just short of its previous all-time high (ATH) of $73,949. Despite being only $267 away from its peak, there’s been no indication yet that investors have returned in significant numbers. This could potentially signal an upcoming downturn for Bitcoin.
As a crypto investor, I’ve been keeping a close eye on the latest trends in Bitcoin pricing, and in this CoinGape piece, I delve into two key indicators suggesting a potential bearish dip ahead.
Will Bitcoin Price Crash Again?
It’s quite likely that Bitcoin’s value may experience a drop due to the upcoming U.S. presidential election results on November 5. This event could cause turbulence not only in the American financial market, but also worldwide, which might negatively impact the crypto markets for a brief period.
Here are two reasons why BTC price might crash.
Bitcoin Active Addresses Shows Lack of Investor Interest.
At present, the number of active addresses on the Bitcoin blockchain stands roughly at 734,000. This figure represents a 25% decrease compared to its all-time high (ATH) of 986,000 observed in March 2024. Lower activity among investors indicates that less money is entering Bitcoin, suggesting the recent surge might be fueled more by momentum than substantial investment.
The low participation might stem from the upcoming U.S. presidential election, scheduled to announce its results on November 5th. This apparent trend suggests that numerous investors are holding back, preferring to wait until after the U.S. presidential election concludes.
Investors Not Bullish On BTC Due to US Presidential Election
As reported by Polymarket, a prediction market platform, it’s estimated that Bitcoin might reach $80,000 with an 8% probability prior to the upcoming U.S. presidential elections. This suggests that investors may have some reservations or pessimism regarding this significant political occasion.
With this outlook in mind Bitcoin price predictions should be tempered and not bullish.
Bitcoin Price Analysis: Key BTC Levels
Based on the daily chart analysis, a seven-month period of stability has established a price range that spans from approximately $68,958 to $59,364. As of October 31, Bitcoin (BTC) has experienced a drop of almost 4%. If this trend persists, the next significant support level could be around $68,958 – which is the upper limit of this established price range.
If Bitcoin shows a positive trend, it’s unlikely to fall below this vital support point. However, if this barrier is breached, investors ought to be alerted to a potential significant drop. The level to keep an eye on next would be approximately $63,099. This figure represents the highest trading volume in the last seven months. In case of a massive sell-off, Bitcoin’s price might return to the lower value range around $59,364.
A breakdown of $68,958 could lead to an 8% to 13% crash in Bitcoin price.
If Bitcoin’s price rebounds from the $68,958 support line and maintains this level past the U.S. elections, this indicates its resilience. This positive trend might propel Bitcoin’s price to a new record high in November.
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2024-10-31 19:00