Bitcoin is in for a wild ride this week. With the US election drama heating up, market volatility is through the roof. The big news? Donald Trump is set to speak at the Nashville Bitcoin conference this weekend.
Trump’s recent brush with an assassination attempt and his controversial statement about Taiwan paying the US for protection have sent shockwaves through the markets.
As if that wasn’t enough, Joe Biden dropped a bombshell last night by stepping down from the race and endorsing Kamala Harris. This caused Bitcoin to nosedive before clawing its way back up to around $68,000.
The options market is going bonkers too. Prices for out-of-the-money options have shot up in the last 24 hours, meaning that traders expect some extreme moves.
So, what *are* these traders thinking? With the election mess and the possibility of another rate cut by the end of the year, there’s a lot of speculation.
QCP suggests favoring trades with topside potential. They have a trade idea: BTC Win-Range. If Bitcoin lands between $90,000 and $110,000 by December 27, you get 5x returns. According to them.
Looking at the technicals, Bitcoin is currently trading around $67,314, down slightly by 0.16%. The price is stuck in a tight range between $67,000 and $68,000.
The Fibonacci retracement 0.236 level is around $67,248 and has been a resistance point. The 0.382 level is at $67,049, acting as another key area. The 0.618 level is near $66,692, often a strong support in a pullback.
The Ichimoku Cloud’s boundaries, from $67,248 to $67,724, provide short-term support and resistance levels. The MACD shows bearish momentum though as the line is below the signal line thanks to a recent sell signal.
The histogram is negative, supporting the bearish trend. However, the histogram bars are shrinking, suggesting that the bears might be slowing down.
Clearly, BTC is in consolidation with a slight bearish tilt. Key levels to watch are $67,049 for support and $68,204 for resistance ahead of the launch of spot Ethereum ETFs tomorrow.
