On Tuesday (November 5), Bitcoin experienced a sharp fluctuation of nearly $2,000 during the day, temporarily reporting a level of $67,600. The U.S. presidential election day arrived, and former President Donald Trump's chances faced a last-minute setback, as Vice President Harris significantly narrowed the gap over the past five days, leading to a dramatic shift in election momentum. The once-largest cryptocurrency exchange Mt. Gox transferred 34,371 Bitcoins, which also triggered panic in the cryptocurrency market.
According to Arkham data, Mt. Gox's cold wallet address (starting with 12Gws) transferred 32,371 Bitcoins worth nearly $2.2 billion to an unmarked wallet address 1FG2CvCnJAsb48Y1r3R43WwHwFJhXRveoy on Tuesday.
Immediately after, Mt. Gox transferred approximately $136 million worth of 2,000 Bitcoins to an unmarked wallet address 15gNRVceULY553Mx5vw1KgDgr83MCa8Aok.
Last week, on October 29, Bitcoin's price nearly hit an all-time high. But since then, uncertainty surrounding the U.S. presidential election and disappointing non-farm payroll data triggered strong selling pressure.
Market reports show that due to the dramatic shift in momentum for the 2024 U.S. presidential election, Bitcoin's price has dropped by 7% over the past week.
Due to the commitment to implement friendlier regulations and support from billionaire Elon Musk, known as the 'Dogecoin Father', Trump has been the favorite candidate of the global cryptocurrency community for most of the campaign period.
However, in the dramatic conclusion of the election season, Harris significantly narrowed Trump's lead, triggering bearish sentiment throughout the cryptocurrency market.
The above U.S. presidential prediction chart comes from a major cryptocurrency betting platform, Polymarket, which is a prediction market platform built on the Polygon network that allows cryptocurrency traders to bet on real events.
Data shows that cryptocurrency traders have bet nearly $2.8 billion on the election results, and as of October 31, Trump led Harris by an astonishing 65.3% to 34.8% in the 'cryptocurrency opinion poll', indicating that the Republican candidate may achieve an overwhelming victory.
But in the last-minute recovery, Harris quickly closed the gap with Trump within a week, and as of November 4, just 13 hours before the election, the gap narrowed to 57.7%-42.4%.
It is noteworthy that Harris's recovery performance between October 31 and November 4 perfectly coincides with Bitcoin's continuous five-day decline. This confirms the claim that the last-minute volatility of the U.S. election led to a 6.7% weekly drop in Bitcoin prices.
Bitcoin Technical Analysis: Is the $65,000 support level at risk?
FXEmpire analyst Ibrahim Ajibade stated that the reason for Bitcoin's 2% drop during the day is due to traders feeling uneasy ahead of the U.S. election. Technical indicators suggest that bearish momentum may last until the winner is announced.
Currently, Bitcoin's trading price is below the volume-weighted average price (VWAP) of $67,991 and remains in the bearish zone of the Keltner Channel (KC), indicating significant downside risk.
If the bears successfully push the price below the psychological support level of $65,000, it could confirm a deep pullback towards the lower limit of the KC range at $63,821.
However, if Trump wins, then the direct resistance level for KC is at $68,117, and reclaiming this level is crucial for recovery attempts.
In a bearish scenario, Bitcoin could test $65,000, while a quick rebound above $68,000 would indicate renewed buyer interest. As the U.S. election results are revealed, strategic traders will closely monitor these important technical indicators.
