Bitcoin Slips 2% Before U.S. Election 2024: Rebound or Break Down – What’s Next?

As the 2024 U.S. presidential election begins, Bitcoin’s (BTC) price has dipped by around 2%, currently trading at roughly $67,848 during Tuesday’s early Asian session. After recently facing resistance near its all-time high of approximately $73,300, Bitcoin is now testing a key support level just above July’s peak.

Even with this decline, technical indicators show a generally positive outlook for Bitcoin. On the daily chart, BTC has been forming higher highs and higher lows—an indicator of an upward trend. This suggests that the broader market trend remains strong, despite the ongoing price correction.

Here’s what you must know.

Why is Bitcoin Price Down Today?

Bitcoin price is dropping today following a notable selloff from whale investors. Market data reveals that U.S. spot BTC ETFs, which had seen a strong seven-day streak of cash inflows totaling over $2.2 billion, recorded their first net cash outflows on Monday.

Leading the withdrawals was Fidelity’s FBTC fund, which saw over $579 million in outflows. This trend has impacted market sentiment, with the Bitcoin Fear and Greed Index slipping from 77 to 70, though it remains in “greed” territory.

Election Volatility – What’s Coming Next?

According to historical trends, Bitcoin price has been highly volatile during the last three U.S. elections, but the overall trend remained bullish. With the crypto issue standing out in the 2024 US elections more than any other, Bitcoin price is expected to regain bullish momentum in the near term. 

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While Wall Street analysts largely believe Bitcoin’s positive trend will persist regardless of the election’s outcome, many in the crypto community have voiced support for Republican candidate Donald Trump. This sentiment reflects a belief that a Republican administration might create a more favorable regulatory environment for the industry.

Key Levels to Watch

If Bitcoin regains its bullish momentum, analysts project that it could reach a short-term target between $78,000 and $84,000, corresponding to the 1.618 and 2.618 Fibonacci Extension levels on the daily chart.

The intersection of politics and cryptocurrency is a fascinating one, and the 2024 US election is set to be a pivotal moment in the evolution of both. Stay tuned to Coinpedia.