Bitcoin has received support at a key support level

Today, let's talk about the latest developments in the Bitcoin market. Currently, Bitcoin has received support at the edge of a critical bull flag, providing opportunities for spot trading to enter the market in batches. This week will reveal the results of the U.S. presidential election; if Trump is elected, it could trigger a market surge, possibly leading to a strong upward trend throughout November. We will further analyze the results in subsequent programs.

The long-term trend of Bitcoin and short-term volatility

As mentioned in our previous program, Bitcoin still maintains a bullish trend in the long term, but there are clear bearish signals in the short term. This is mainly due to Bitcoin currently being influenced by the U.S. stock market. The market expects that Trump's election could drive strategic support for Bitcoin from the government, coupled with the possibility that the U.S. stock market might benefit from interest rate cuts, making risk assets likely to gain support in such a context. Therefore, some investors have already placed bets on Trump's election. However, as the election results draw near, the market may experience volatility, and some investors choose to exit early.

Recent Bitcoin pullbacks and bull flag support

Due to increased market volatility, Bitcoin fell back to the edge of the bull flag at the beginning of October, with prices around $68,800 to $69,000. This pullback provided an opportunity for shorting, and we also engaged in short positions on Ethereum a few days ago, achieving good returns.

Technical analysis: weekly and daily signals

This week, the weekly Bitcoin chart closed with a long upper shadow, which is not an ideal signal from a technical perspective. However, considering its overlap with the uncertainty of the U.S. election, this weekly candle may be heavily influenced by news. In the short term, we observe on the daily level that the opening price of the bullish candle on October 28 formed support, and after rebounding, a false breakdown occurred at the edge of the bull flag, allowing spot investors to consider entering the market in batches.

Reversal structures at the 4-hour and 1-hour levels

In the 4-hour and 1-hour charts, Bitcoin has formed a bottom reversal structure, showing signs of a double bottom. The current testing neckline position coincides highly with the previous bull flag position, and the bottom structure has been formed and broken through. This means that spot investors can enter the market in batches at this stage. Contract investors should wait for a price breakout above $69,800 or even $70,000 to confirm a complete bullish trend. ### Impact of the U.S. Election and Investment Strategies

For contract investors, the election results this week could bring significant volatility, especially given the uncertainty surrounding Trump's expected victory. Personally, I tend to be optimistic about Trump's election, which could lead to a return of profit funds, but if the results do not meet expectations, volatility may be difficult to control. Therefore, spot investors can still consider holding long positions around the support level of $68,000, while contract operations should be cautious, waiting for the election results and market reactions before deciding.

Summary

Today's sharing can be summarized as follows: Bitcoin has received support at the bull flag support level, and the false breakdown has created a good opportunity for left-side entry in the spot market. For contract operations, if the price breaks above $69,800 accompanied by news from the U.S. presidential election, right-side entry can be expected. It is recommended that everyone closely monitor market changes brought about by the election results. Thank you for watching, and see you next time.