Over the past two months, the price of Bitcoin has maintained an upward trend and has maintained a strong support level amid market volatility.
As the US election approaches, many analysts believe that the result could have a significant impact on the price of Bitcoin. This is particularly because large holders, or "whales", can react to the sentiment of investors.
Bitcoin whales hold the key
The behavior of Bitcoin whales is expected to be a key factor in determining the price trajectory of the asset over the next few weeks. According to sentiment data, major Bitcoin holders appear to be watching the market's reaction to the US election result.
"...cryptocurrency traders are 'expecting the unexpected'. This applies particularly to the whales of Bitcoin, whose trading volume has decreased after the sudden surge last week. Look for such a sharp increase in whale BTC transactions as a reliable sign of a potential price reversal for the cryptocurrency as a whole," Sentiment said.
The US election result could either reinforce Bitcoin's current upward trend or trigger a temporary pullback as whales detect hesitation or panic among smaller holders. These large holders can set the tone of Bitcoin's price behavior in the short term.
Read more: What Happened in the Last Bitcoin Halving? 2024 Prediction
Bitcoin's macroeconomic momentum remains promising. The profit ratio of the total Bitcoin supply is often an important 95% threshold that indicates market peaks. Reaching this level generally marks the peak of prices and can signal a potential price reversal. Currently, Bitcoin has room for further upside before reaching this threshold, suggesting the asset could see additional gains.
As long as Bitcoin remains below this level, the upside potential is maintained. Sustained demand and limited whale activity ahead of the election result support this view. However, Bitcoin will need continued buying interest and favorable macroeconomic conditions to sustain this trend, and the upcoming election is expected to have a significant impact on investor sentiment.
BTC Price Prediction, Uptrend Maintained
Bitcoin is trading and is currently at $68,833. It has not been able to break the $71,367 barrier. The cryptocurrency needs to remain above the $68,248 support level to attempt another upside. Maintaining this support is crucial for Bitcoin to maintain its upward momentum.
If volatility around the election spikes and Bitcoin experiences a pullback, it could fall to $65,292. This decline could delay hopes for a new all-time high and impact short-term profitability.
Read more: Bitcoin Halving History: Everything You Need to Know
On the other hand, if Bitcoin successfully establishes $71,367 as a support level, it could set the stage for a new all-time high. Achieving this would confirm the sustained uptrend and position Bitcoin for the next major rally, which could bring substantial gains for investors to keep an eye on.
