Bitcoin has gained support at a key support level
Today, let's talk about the latest developments in the Bitcoin market. Currently, Bitcoin has gained support at the edge of a key bull flag, providing opportunities for spot trading to enter in batches. This week will mark the moment when the results of the US presidential election are revealed. If Trump is elected, it may trigger a wave of market surge, potentially 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 we mentioned in previous programs, Bitcoin maintains a long-term bullish trend, but short-term bearish signals are evident. This is mainly due to the influence of the US stock market on Bitcoin. The market expects that Trump's election may promote strategic support for Bitcoin from the government, coupled with the US stock market potentially benefiting from interest rate cuts, risk assets are likely to receive support in this context. Therefore, some investors have preemptively bet on Trump's election. However, as the election results draw closer, market volatility may occur, and some investors choose to exit early.
Recent Bitcoin pullback 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 opportunities for short positions, and we also took short positions on Ethereum a few days ago, yielding good returns.
Technical analysis: Weekly and daily signals
This week, Bitcoin's weekly chart closed with a long upper shadow, which from a technical perspective is not an ideal signal. However, considering its overlap with the uncertainty of the US elections, this weekly candle may be significantly influenced by news. In the short term, we observe on the daily chart that the opening price of the bullish candle on October 28 formed support, and after rebounding, it created a false breakdown at the edge of the bull flag; spot investors can consider entering 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 highly overlaps 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 prices to break through $69,800 or even $70,000 to confirm a complete bullish trend. ### The impact of the US election and investment strategies
For contract investors, the election results this week may bring significant volatility, especially with the uncertainty surrounding Trump's election prospects. Personally, I tend to be optimistic about Trump's election, which could lead to a return of profitable capital, but if the results are not as expected, 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 to decide after the election results and market reactions.
Summary
Today's sharing is summarized as follows: Bitcoin has gained 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 through $69,800 accompanied by news stimuli from the US presidential election, a right-side entry is expected. I suggest everyone closely monitor the market changes brought about by the election results. Thank you for watching, see you next time.
