Bitcoin Price Falls 7% Amid Five Consecutive Red Daily Candles
The Bitcoin price has experienced five consecutive days of decline since nearing its all-time high of $73,620 last Tuesday, resulting in a roughly 7% drop. This is illustrated on the weekly chart with a gravestone doji indicating potential bearish sentiment.
Chartered Market Technician Aksel Kibar highlighted via X that the BTCUSD weekly candle resembles patterns seen in GOLD, suggesting a possible reversal. He cautioned that this signal should be confirmed by subsequent weak candles to validate any trend reversal, noting that bullish attempts during sessions have been countered by bearish pressure near session closes.
Bitcoin To Hit $75,000 By End Of November?
Despite these trends, Singapore-based trading firm QCP Capital remains optimistic in its latest investor note, citing notable changes in political prediction markets and BTC derivatives.
QCP Capital observed that odds on the decentralized prediction market Polymarket have aligned more closely with actual polling estimates, indicating a tight race between Vice President Kamala Harris and former President Donald Trump. While Polymarket still favors Trump at 55%, this represents a decrease from 66% the previous week, reflecting a narrowing margin consistent with mainstream polling data.
The firm noted cautious sentiment in the crypto market, characterized by "sideways price action over the weekend" and a reduction in leveraged perpetual futures positions from $30 billion to $26 billion. This pullback may stem from uncertainties related to macroeconomic factors or the upcoming election.
Nevertheless, QCP Capital anticipates potential upward movement in Bitcoin's price. They posit that this could represent "the calm before a break from the multi-month range" toward new highs. The firm reported increased buying activity for end-November $75,000 call options, suggesting traders are preparing for a significant rally by month-end.
Additionally, QCP highlighted rising options activity linked to the election date, with implied volatility surpassing 87% as realized volatility remains at 40%. This elevated implied volatility indicates expectations of considerable price fluctuations around the election period.
Looking forward, QCP expects Bitcoin's spot price to remain range-bound until results from the US election provide greater clarity. They anticipate price fluctuations based on election outcomes, stating that a Trump victory could trigger an immediate price increase, while a win for Kamala could lead to the opposite effect.
At press time, BTC traded at $68,852.
