Bitcoin price remained on edge on Monday, falling for six consecutive days as investors remained fearful ahead of the US election. BTC, the OG of the crypto industry, was trading at $68,550, much lower than last week’s high of $73,645.
Fear and uncertainty ahead of election
Bitcoin price has pulled back, falling by over 6.7% from its highest level this month as traders prepare for the upcoming election.
Its performance has mirrored that of other financial assets like global equities, which were barely moved on Monday. Gold and silver, the top precious metals, have also retreated sharply in the past few days.
Bitcoin will react to two main events this week. First, the US election scheduled on Tuesday, will be the most important event since it will likely determine the future of regulations in the United States.
Trump has pledged to enact friendly regulations, while Kamala Harris is expected to continue Biden’s policies of regulations through enforcement. Just last week, the Securities and Exchange Commission (SEC) sent a Well’s Notice to Immutable, the creator of a layer-2 network for gaming and NFTs.
Read more: Bitcoin Price Prediction as Trump’s Polymarket Odds Slip
Therefore, a Trump victory will be seen as a positive catalyst for Bitcoin and other cryptocurrencies, at least in the short term. In the long term, however, this election will not have a big impact on Bitcoin and other cryptocurrency prices. Besides, Bitcoin has soared to a record high under all presidents since its founding.
The other key catalyst for Bitcoin will be the Federal Reserve decision scheduled on Wednesday. In it, analysts expect the bank to cut interest rates by 0.25%. Odds of more cuts happened after the US published weak jobs numbers on Friday, which showed that the economy created just 12,000 jobs in October.
Bitcoin often does well when the Fed is cutting interest rates since it leads to a rotation from safe assets to risky ones. This week’s decision, however, will likely have a limited impact because it will be overshadowed by the US election. It has also been priced in by market participants already.
Still, analysts believe that Bitcoin will retest its all-time high this year. Polymarket places the odds that it will retest its record high at 74%.
Read more: Bitcoin Price Prediction as Rich US University Buys ETFs
Bitcoin price analysis
BTC chart by TradingView
The daily chart shows that the BTC price has pulled back in the past few days, moving from last week’s high of $73,500 to below $68,000. It has remained above the key support level at $66,510, its highest point on September 27.
Bitcoin has formed a golden cross pattern and an inverse head and shoulders pattern, a popular bullish sign. It also seems to be forming a doji candlestick pattern, pointing to a potential comeback ahead or after the election. If this happens, the initial point to watch will be at $73,500.
