Bitcoin, Ethereum, Dogecoin Struggle As Trader Points Out Past Pre-Election Derisking Patterns: 'Be Careful What You Sell'

Cryptocurrency markets are trading down as Bitcoin fights to stay above the $70,000 level.

Cryptocurrency	Price	Gains +/-
Bitcoin BTC/USD	$70,425	-2.1%
Ethereum ETH/USD	$2,523	-5.3%
Solana SOL/USD	$169.25	-3.1%
Dogecoin DOGE/USD	$0.1625	-3.4%
Shiba Inu SHIB/USD	$0.00001793	-2.9%

Notable Statistics:

• IntoTheBlock data shows large transaction volume decreasing by 4.77% and daily active addresses falling by 4.97%. Exchanges netflows are up by 483% as Bitcoin dominance stands at 57%.
• Coinglass data reports 76,421 traders were liquidated in the past 24 hours for $200 million, $172 million of which were long liquidations.

Notable Developments:

• Trading Bitcoin During The 2024 Election: Here’s What You Should Know
• ‘What Coin Should I Buy?’—Binance Founder Changpeng Zhao Shares Anecdotes From 4-Month Prison Stint
• Donald Trump Wishes Bitcoiners ‘Happy Birthday’, Vows To ‘End Kamala’s War On Crypto’ As World Liberty Financial Falls Way Short Of Fundraising Goal
• ‘We’d Be A Fool If We’re Not Prepared’—Florida’s Chief Financial Officer Vows To ‘Harness Opportunities’ In Crypto
• Bitcoin, Gold Will Surge If Donald Trump Wins: JPMorgan

Top Gainers:

Cryptocurrency	Price	Gains +/-
Klaytn KLAY/USD	$0.1393	+9.6%
Kaspa KAS/USD	$0.1144	+3.7%
Raydium RAY/USD	$3.14	+2.5%

Trader Notes: Trader HornHairs pointed out that a similar sell-off took place before the 2016 and 2020 elections but cautioned his followers not to succumb to the short-term urge to sell.

$BTC

Derisking into the election 5-6 days before it takes place happened in both 2020 and 2016

Price then went on to never retest the lows set the week before the election ever again

Be careful what you sell here pic.twitter.com/ldGOqYOqte

— HornHairs 🌊 (@CryptoHornHairs) October 31, 2024

CryptoKaleo highlighted another similarity between the 2024 and 2020 chart patterns. In 2020, Bitcoin did not immediately “rip” after breaking its all-time high and a similar pattern may be playing out now, according to the heavily-followed trader.

Trader Altcoin Sherpa marked the next potential support areas if Bitcoin were to fall below the $70,000 level.

$BTC: next areas up if this current region doesn't hold

Think we should see some sort of bounce around here though, at least short term. pic.twitter.com/qS1MEEcdPO

— Altcoin Sherpa (@AltcoinSherpa) October 31, 2024

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: 

• Bitcoin Is A ‘Liquid Hedge’ Donald Trump Winning The Election But Don’t Count On $100,000 In 2024, Analyst Says

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