Renowned analytical platform Santiment reported that President Biden’s withdrawal from the upcoming US presidential election caused a minor panic drop in cryptocurrency prices. This reaction highlights the sensitive relationship between major political events and the volatility of the crypto market.
According to platform analysis, a similar market behavior was observed two weeks ago when news broke of an attempted assassination on former President Donald Trump, resulting in a comparable dip in prices. However, during the closing hours of Sunday, the crypto market quickly rebounded from the initial drop following Biden’s announcement, leading to notable volatility at the start of the week.
Market analysts predict that any endorsement by Biden of Vice President Kamala Harris or other potential replacement candidates will become a trending topic with a significant impact on cryptocurrency trends. Regardless of one’s interest in US politics, the social volume surrounding these major topics shows fragile correlations with speculation-driven cryptocurrency prices.
The price of Bitcoin (BTC) rose following Biden’s withdrawal announcement. Although prices have slightly cooled since then, the overall uptrend remains strong. This retracement allows buyers to reinforce their positions, with potential gains expected as Bitcoin’s price currently holds above the previous resistance level of $66,000.
Bitcoin, now above key resistance, may see buyers extend gains. If bullish momentum continues, analysts target $72,000, possibly reaching new all-time highs. At press time, BTC is trading at $67,324 and has increased by 0.43% in the past day and 7.16% over the past week.
The average trading volume stands robust at over $30,44 billion, indicating strong market activity. With prices on the rise and momentum gaining, Bitcoin is likely to continue its impressive performance in the near future. Technical analysis of the daily chart shows prices banding along the upper Bollinger Bands, pointing to high upward momentum.
Bitcoin Faces Key Resistance as TD Sequential Flashes Sell Signal at $67,500Given the clear uptrend and Bitcoin’s current stability above the critical $66,000 support level, aggressive traders might consider buying the dip, targeting $72,000 in the short term. For more conservative traders, waiting for a decisive break above $72,000 might be wise before increasing positions.
As the political landscape evolves and continues influencing market sentiment, traders and investors must remain vigilant. Balancing the interplay between political events and cryptocurrency trends would be crucial for navigating the market effectively.
