Bitcoin prints its first green candle after five days of consistent declines. It is slightly up, reclaiming the $68 barrier and trading above it.
The latest price change comes as the asset lost over 5% over the last five days, dipping from $73k to a low of $66,798. One key highlight during this period happened on Thursday when it opened trading at $72,330 but retraced to a low of $69,591. Although it slightly increased, it closed with losses of almost 3%.
The latest price decline is unsurprising, as the apex coin was largely bullish for over twenty days. Nonetheless, some market observers blame the ongoing downtrend on other issues, especially politics.
The US elections are heating up with many changes. One such change is the growing chance of the Democrats candidate winning the election. Kamala Harris closed the gap on betting platform Polymarket. Her rating rating hit 49 against 30 a few days ago.
Many analysts drew a parallel between when the candidate rating goes up and Bitcoin prices. The apex coin lost a fraction of its value during this period, and many blame this catalyst for the ongoing dips.
Low Buying Pressure Continues
Onchain data points to the continuation of the decline as the ongoing hike lacks the needed push. The bulls are grappling with a massive supply shock and have yet to soak it up. Exchange reserves are increasing as selling pressure mounts. The trend has continued over the last seven days as the selloffs continue.
Bitcoin sees massive funds outflow from several key regions. Traders in the US are currently bearish, selling off their assets and buying fewer units. Due to this trend, the Coinbase premium is negative. This sentiment mirrors the sentiment in the Asian market, as the Korea premium is negative.
ETFs are seeing very small buying pressure over the last 24 hours. It saw over $70 million in inflows while outflows more than doubled. The funds premium suggests that the bearish trend is ongoing, and these instruments see more outflows.
Large bag holders are moving their assets. The Binary CDD is negative and indicative of further decline. The aSOPR suggests that the movement may be to dump their bags as it is negative, indicating that traders are taking profit. The trend may not end soon as there is high unrealized profit.
The derivatives market remains positive despite the ongoing bearish sentiment. The bulls flood this sector to keep their positions open, and funding rates are favorable for this reason. Nonetheless, it sees less open interest, and liquidations are 10% lower over the last 24 hours.
Bitcoin Could Drop Lower
Indicators on the one-day chart hint at further declines ahead. The Bollinger bands show the apex coin trading below the middle band. Previous price movements suggest it will retrace down to the lower band before resuming its uptrend. This means it could hit $64k in the coming days.
However, fundamentals play a massive role in the ongoing price trend. Recent data shows the Republican candidate edging in several swing states. The crypto market may perceive this as a bullish sign surge.
Nonetheless, other indicators are still bearish, like the moving average convergence divergence. The 12-day EMA continues its descent and is unaffected by the ongoing hike. The average directional index is also negative as funds selloffs continue.
In the short term, the apex coin may reclaim $69k, surging above the 38% Fibonacci retracement level. A change in price trajectory may guarantee a retest of the 61% Fib mark.
