This week is becoming crucial for #Bitcoin investors as we approach a decisive weekly close. Currently, Bitcoin is trading at a significant support level, and holding this level may play a key role in determining the market's direction. Here’s what you need to know about Bitcoin's current technical outlook, market indicators, and the potential impact of the elections in the U.S.
Technical Outlook: The Importance of the $68K Support Level and Weekly Close
Recently, I mentioned the possibility of dropping to the support level of $68,000, a level that is often retested after trend breaks. Bitcoin has seen a 7% decline, and holding this level is crucial to limit further downward volatility.
If Bitcoin closes above $70,000 tonight, it will be a particularly positive signal, potentially indicating a break in the weekly downtrend. Such a close would set a more optimistic mood for the market in the short term.
Short-Term Market Index: Whale Activity and Real Market Volatility
In the short term, despite a 7% drop, whale activity remains positive, currently around +7. However, on the real market side, activity remains relatively quiet; major exchanges like Coinbase have not yet returned to buying after recent sell-offs, so we might see a quiet weekend.
Funding Rate: The funding rate is at a normal level, indicating no strong buying (long) pressure. Long liquidations are concentrated around $65,000, while short liquidations are around $74,000.
U.S. Elections and Bitcoin: Could a Trump victory be positive for the market?
The elections in the U.S. represent a significant variable for Bitcoin's market outlook. Next week, the results are expected to be finalized. Analysts believe that a Trump victory could create a more favorable environment for financial markets. In fact, there seems to be a correlation between Trump's probability of winning and Bitcoin price volatility.
The election process has also strengthened Bitcoin's correlation with U.S. stock indices like the S&P 500 and Nasdaq. Recently, Bitcoin has moved almost in sync with these indices, making U.S. market trends particularly important to monitor in the coming two weeks.
Summary and Insights
Tonight's weekly close could be a turning point for BTC's medium-term outlook. Holding the support level of $68,000 is critical to maintaining the current positive market sentiment. However, for a strong continuation of the uptrend, a close above $70,000 is essential.
With the influence of the elections in the U.S., the next two weeks are likely to be eventful for Bitcoin. Monitoring U.S. stock market volatility and Trump's election performance may provide valuable insights. I will share regular updates on market conditions as we navigate through this period.
