Bitcoin Nears ‘Death Cross’ Ahead of Trump Versus Harris Debate

Bitcoin (BTC) price lost some of its upside momentum ahead of the U.S. presidential debate between Donald Trump and Kamala Harris on Sep. 20.

The benchmark cryptocurrency wobbled between gains and losses and was up 0.14% at press time, trading for around $57,150. Its price moves appeared similar to the U.S. stock futures, indicating that risk investors have become cautious ahead of the debate.

Trump vs. Harris Debate: What’s In For Bitcoin Traders?

In July, Donald Trump endorsed Bitcoin and the broader crypto market, a marked shift from his critical stance. His change in position sparked optimism among crypto advocates, believing that a Trump-led administration could introduce more favorable policies toward digital assets.

On the other hand, Kamala Harris’s stance on cryptocurrencies remains unclear. She has not made substantial public statements, leaving investors curious whether she will support stricter regulations or embrace a more open stance on digital currencies. Her lack of a clear position leads to speculation about how she might address the issue should it come up during the debate.

The upcoming debate could provide important insights into how the candidates intend to handle the cryptocurrency industry.

The crypto sector’s growth has made it a critical issue, and traders and long-term investors are eager to see if Harris will outline any new policies or whether Trump will reaffirm his support for the industry. Any such policy indications could influence market sentiment.

As of Sept. 10, Polymarket polls show Donald Trump narrowly leading Kamala Harris in the U.S. presidential race, with 52% of voters supporting Trump and 48% backing Harris.

That is one reason behind Bitcoin’s exhausting upside momentum on Sept. 10.

Bitcoin’ Death Cross’ is Raising Selloff Risks

From a technical perspective, Bitcoin’s key moving averages are closer to forming a “death cross,” a bearish pattern that appears when an asset’s 50-period moving average crosses below the 200-period moving average.

In this case, BTC’s 50-day EMA is eyeing a close below its 200-day EMA, just as the cryptocurrency trades below them. That said, the price may rally toward the EMAs—aligning with the $59,300-59,750 range—only to correct afterward to retest a mult-month descending trendline support at around $50,000.

In other words, BTC’s price may decline by 10% in September.

Conversely, a breakout above the 50-200 EMA confluence could propel Bitcoin’s price toward its multi-month descending trendline resistance, targeting approximately $63,500 by September.

US CPI Impact on Bitcoin

Bitcoin’s price has jumped by nearly 10% from its recent lows of around $52,570, a rally that appeared in the days leading up to the U.S. Consumer Price Index (CPI) print, which the Labor Department will release on Sept. 10.

BTC’s price typically rallies ahead of the U.S. inflation data, only to drop afterward for both short and long-term timeframes. For instance, the cryptocurrency declined by over 8% after the August CPI report. Similar declines have appeared throughout 2024, as shown below.

If the US CPI fracal plays out as intended, the Bitcoin price will likely reach the descending trendline support target of around $50,000 discussed above. Michael van de Poppe, CIO/founder of crypto venture capital firm MN Capital, explains:

“I think we’re going to have some more corrections taking place surrounding CPI before the upward momentum continues. Maybe $54K holds, clear invalidation above $56K for Bitcoin.”