Bitcoin Price Forecast: BTC Plummets 7% as Kamala Harris Cuts Trump Lead

Bitcoin Price Analysis: 

Bitcoin price fell as low as $67,400 on Monday, Nov 5, down 7% from last-week’s top, as Donald Trump’s winning odds plummeted over the weekend. Will BTC price decline further or make an instant rebound towards $75,000 in the week ahead?

Bitcoin Price Dips 7% as Trump Suffers Last Minute Set-Backs

Last week, Bitcoin price came within a hairsbreadth of reaching new all-time highs on October 29. But since then, uncertainty surrounding the US Presidential elections and underwhelming Non-Farm Jobs data have triggered intense sell-pressure.

The BTCUSD daily chart above shows how Bitcoin price rallied 12.45% in a blistering 4-day winning run, moving from $65,500 October 25 to a multi-month peak of $73,624 on October 29. When BTC price hit the $67,444 mark on Sunday Nov 3, it effectively wiped out 7% of those gains.

At the time of writing on Nov 5, Bitcoin price has rebounded above $68,700. But having closed the last 5 trading days below the Volume-weighted average price, Bitcoin price still remains within bearish territories.

Why is Bitcoin Price Going Down? 

Market reports suggest that Bitcoin price tumbled 7% over the past week due to a dramatic momentum swing in the 2024 US presidential elections race.

Promising friendlier regulations, and supported by long-term Dogecoin fan Elon Musk, Donald Trump emerged the global cryptocurrency community’s overwhelming favorite candidate for majority of the campaign period.

However, in a dramatic end to the electioneering season, Democrat candidate Kamala Harris cut down Trump’s lead considerably, sparking bearish sentiment across the cryptocurrency markets.

The US Presidential Forecast chart above is from Polymarkets, a prediction markets platform built on the Polygon network, that allows crypto traders to wager on real-word events.

The data shows that crypto traders have wagered nearly $2.8 billion on the elections outcome, with Trump leading the ‘crypto polls’ by a staggering 65.3% votes to Harris’ 34.8% as of October 31, signaling a potential landslide victory for the Republican candidate.

But amid a last-minute resurgence, Kamala Harris rapidly gained ground on Trump over the week, closing the gap to 57.7% – 42.4% at the time of publication on Nov 4, barely 13 hours from the elections.

Notably, Kamala’s resurgence performance between Oct 31 and Nov 4, has starkly coincided with Bitcoin’s on-going 5-day losing streak. This lends credence to the narrative that the last-minute swings in US elections race contributed to BTC 6.7% weekly timeframe price downturn.

Bitcoin Price Forecast: $65,000 Support at Risk?

Bitcoin price dipped by 2% within the daily timeframe on Nov 5, as traders grow skittish ahead of the US elections. Technical indicators suggest the bearish momentum could persist until a winner is announced.

Currently, Bitcoin trades below the Volume Weighted Average Price (VWAP) of $67,991 and remains within the bearish zone of the Keltner Channel (KC) bands, indicating intense downside risk.

Should bears manage to push prices below the $65,000 psychological support, it could confirm a deeper correction towards the lower KC band at $63,821.

However, in the event of a Trump win, immediate resistance lies at $68,117 within the KC, and regaining this level would be crucial for a recovery attempt.

A bearish scenario could see Bitcoin testing $65,000, while a swift rebound above $68,000 would signal renewed buyer interest. Strategic traders would watch these vital technical markers closely as the US election results unfold.