Bitcoin price has been in an uptrend for the better part of the past two months, holding strong support levels amid market volatility.
As the US election approaches, many analysts believe the results could significantly affect the price of Bitcoin, especially as they could trigger reactions from large holders, or “whales,” based on investor sentiment.
Bitcoin Whales Hold the Key
Bitcoin whales’ actions are expected to be a key factor in determining the asset’s price trajectory in the coming weeks. According to data from Santiment, major holders are showing signs of waiting to see how the market reacts to the US election results.
Crypto traders are ‘expecting the unexpected.’ This is particularly true with Bitcoin whales, which have shown a decrease in transfers since last week’s sudden spike near the top. Watch for these spikes in whale BTC transactions as generally reliable signs of potential price reversals for the entire cryptocurrency, Santiment said.
The outcome of the US election could either reinforce Bitcoin’s current bullish trend or trigger a temporary pullback if whales feel hesitation or panic. These large holders could then set the tone for BTC’s price action in the short term.
Read more: What is Bitcoin Halving and how does it work?
Bitcoin Whale Transactions. Source: Santiment
Bitcoin's macro momentum remains promising as total BTC in profit is below the critical 95% threshold that often signals a market top. When this level is reached, it usually marks a spike in prices and can indicate a possible price reversal. Currently, Bitcoin has room to continue its upward movement before reaching this threshold, suggesting the asset could see further gains.
As long as Bitcoin remains below this level, there is room for upward movement. Continued demand, coupled with subdued whale activity ahead of the election results, supports this view. However, the asset will need sustained buying interest and favorable macroeconomic conditions to continue this trend, making the upcoming election a critical influence on investor sentiment.
Bitcoin Supply in Profit. Source: Glassnode
BTC Price Prediction: Maintaining the Uptrend
Bitcoin is trading at $68,833 after failing to break above the $71,367 barrier. The cryptocurrency needs to hold above the $68,248 support level to attempt another upward move. Holding this support will be key for BTC to retain its bullish momentum.
If volatility increases around the election and Bitcoin experiences a pullback, it could fall to $65,292. Such a drop would delay hopes of a new all-time high and could impact short-term profitability.
Read more: How to Invest in Bitcoin in November 2024
Bitcoin Price Analysis. Source: TradingView
On the other hand, if BTC can flip $71,367 into support, it could set the stage for a new all-time high. Reaching this would validate the ongoing uptrend, positioning Bitcoin for its next major rally as investors eye substantial gains.
The article Bitcoin above $70K is interrupted by US elections was first seen on BeInCrypto Brazil.
