30s Summary

Bitcoin’s price fell by over 6.50% as Trump’s likelihood of winning the upcoming U.S. presidential election slimmed down, as the cryptocurrency has been seen as a ‘Trump hedge’. However, the price drop is also attributed to Bitcoin being overbought. Going forward, Bitcoin’s price may decline towards $68,000 or even $55,500-$58,000 in a worse case scenario. Nonetheless, it is moving upwards within it’s usual rising channel range.

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Bitcoin’s price took a bit of a dip today as folks started to focus on the fact that Trump’s likelihood of winning the upcoming U.S. presidential election looks a little shakier.

What’s this got to do with Bitcoin? Well, Bitcoin had been seeing some decent heights, reaching its second-highest level in 2024 three days ago at $73,600. But as Trump’s odds have dropped, so has Bitcoin, by over 6.50%, resting at around $69,200.

Betting sites like PredictIt, Polymarket, and Kalshi have also seen Trump’s lead over Democratic candidate Kamala Harris shrinking, and because Bitcoin has been seen as a ‘Trump hedge’, its drop aligns with this.

Earlier this week, when Trump was faring better against Harris, Bitcoin was just a hair away from March’s all-time high of $73,794. But now, with the election getting closer, it seems folks are getting cautious and Bitcoin’s value is feeling the effects.

But don’t be quick to write it off just yet. This price drop just seems to be due to Bitcoin being overbought and is now correcting itself. It doesn’t necessarily mean that we’ll be seeing a massive reversal.

That said, Bitcoin’s price drop has brought it back into its usual rising channel range, and it’s currently moving upward within converging trendlines. Normally, this would be seen as a bearish pattern, indicating a weakening in buying momentum.

If Bitcoin’s price slips below this lower trendline, we could see it declining toward around $68,000. In worse case scenarios, Bitcoin may even see a correction down to the $55,500-58,000 in the last couple of months of this year.

But like everything else in the world of investment, there are risks, and it always pays to do your own research before making any major decisions.

Source: Cointelegraph