As the US prepares to call a high-stakes election this week, crypto traders are expecting increased activity in the market, especially in Bitcoin trading. Data from Santiment shows that large Bitcoin holders are reducing the number of transactions.
Historically, an increase in whale transactions has signaled a potential price reversal in the cryptocurrency market. However, Santiment’s data suggests that the whales’ current cautious behavior does not necessarily predict a decline, but rather reflects a cautious approach in response to expected market shifts.
Whale activity and market sentiment
There was a shift in whale activity in August, with Bitcoin trading around $50,000. According to Santiment, this increase in transaction volumes coincided with the rise in the price of Bitcoin in the following months.
However, by the end of October the trend changed. As Bitcoin neared $72,000, whales moved from hoarding to profit-taking, reflecting a broader strategy by savvy investors to sell at higher prices.
Read also: Bitcoin bull run may begin after US election results in 2024
Technical analysis: key support and resistance levels
In addition to his cautious forecasts, cryptanalyst Michael van de Poppe called this a critical week as both the US elections and Federal Reserve (Fed) decisions introduce further uncertainty.
It’s a big week!
Elections and the Fed.
Last week had the worst employment data in 3 years, so I’m guessing an “upwards only” season is literally just around the corner. #Bitcoin tested the green zone for support.
It’s hard to say which direction we’re heading, expecting even more volatility. pic.twitter.com/9pAWzdcZ8F
– Mikael van de Poppe (@CryptoMichNL) November 4, 2024
Van de Poppe pointed to recent bearish data, including the weakest U.S. jobs report in three years, as suggesting a possible increase in volatility in the cryptocurrency market.
His analysis highlights Bitcoin’s recent high at $73,650 and the pullback around $68,000, the current key support level.
Further support lies around $64,130, which is considered necessary to maintain Bitcoin’s uptrend. A fall below this level could test the liquidity zone around $60,748, where buyers may take action to prevent further declines.
The RSI suggests neutral momentum without showing excessive buying or selling pressure, consistent with overall cautious sentiment as traders monitor these levels.
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