Amid the heightened hype of the U.S. 2024 elections, which has seen pro-crypto presidential candidate Donald Trump lead in major polls, Bitcoin’s (BTC) price has signaled short-term bearish sentiment. The flagship coin has dropped over 4 percent in the past seven days to trade above a crucial support level of about $68.5k on Tuesday, November 5, during the early New York session.
After closing October with a bullish outlook, Bitcoin price has so far opened November with a bearish outlook. In the past six years, Bitcoin price has registered more bearish in November and December than bullish results.
Why Bitcoin Investors Are Derisking
Since retesting its all-time high in late October above $73k, Bitcoin price has been trapped in a falling trend. The low demand for Bitcoin in the past few days, as shown by the cash outflows from the US spot BTC ETFs, has weighed down the bullish sentiment.
On Monday, the US spot BTC ETFs registered the highest cash outflows since early May of about $541 million. The short-term uncertainties of the US elections are expected to heighten crypto volatility in the coming days, and thus remain unattractive to investors.
Meanwhile, the Bank of England and the Federal Reserve are expected to initiate another rate cut on Thursday, in a bid to stir economic growth ahead. The combination of the high-impact news has seen more investors take refuge in the stablecoins market.
Midterm Targets for BTC Price
According to a popular crypto analyst Ali Martinez, Bitcoin price is currently retesting a crucial 1-hour falling logarithmic trend established in the past few days. Having been rejected five times in the past few days, Martinez is of the opinion that Bitcoin price is likely to drop in the coming days towards the support level above $66k.
Previously, crypto critic Peter Schiff had cautioned investors of a potential sell-the-news scenario after the U.S. election. However, the bearish sentiment will be invalidated if Bitcoin price consistently closes above $71k.
