After briefly raising the price of Bitcoin (BTC) above $ 14,000, it suddenly dropped 3% to $ 13,566 within hours on November 4th. Coincidentally, the dollar, gold and stocks go hand in hand.

Analysts noted that the uncertainty surrounding the election served as a catalyst for a significant correction.

Because the market has fallen after the surge in votes
As the mainstream media began actively reporting the number of votes, the price of bitcoin and shares rose. However, after voting that day, all risk tolerant and risk tolerant assets, including S&P 500 futures, lost money.

Bloomberg financial reporter and co-host of Odd Lots podcast Tracy Alloway said it could be the result of President Donald Trump’s statement. she said:

“The S&P 500 futures dislike Trump’s proposal for Trump to go to the Supreme Court to challenge the election results. Now it’s red. ”
It is worth noting that the recent drop in the price of bitcoin coincided with the drop in the US dollar. Typically, when the US dollar depreciates, bitcoin and gold tend to rise because both stores of value are valued against the US dollar.

As Cointelegraph reported, BTC has had a low correlation with other assets, including stocks, in the past few weeks. Therefore, the collective adjustment of most of the core assets is an unexpected market reaction.

What will happen to BTC in the near future?
According to data from CryptoQuant, the calculated leverage ratio of Bitcoin futures on Binance has reached an all-time high. This shows that there are more traders in the Binance BTC derivatives market than ever.

On November 4th, CryptoQuant CEO Ki-Yong Joo warned traders of the increased volatility caused by the cascade cleanup. If there are an unusually large number of contracts on the market, this can cause significant price fluctuations.

Leverage ratio calculated for Bitcoin futures. Source: CryptoQuant
In the short term, as BTC has been repeatedly denied trading at $ 14,000, traders are prone to a market decline.

Bitcoin will have several key support levels for the foreseeable future. First of all, the $ 13,300 area was in a strong defensive state last week. If BTC continues to hover above $ 13,300, it means buyers are resilient.

Second, since the beginning of November, the whale cluster has provided support for a $ 13,000 level. This means that whales have amassed a lot of BTC at this level, making it an area of ​​interest for buyers.

Source: CoinTelegraph