Bitcoin Whales Are Holding Back Ahead of Election Week, Market Activity Expected to Spike

As the U.S. readies for the high-stakes election announcement this week, crypto traders expect heightened market activity, especially in Bitcoin trading.

As the United States prepares for a high-stakes election announcement this week, crypto traders are expecting heightened market activity, particularly in Bitcoin (CRYPTO: BTC) trading.

According to data from Santiment, large Bitcoin holders, or whales, are scaling back on transactions. This behavior is being closely monitored by traders as it can potentially impact the direction of the crypto market.

Historically, increased whale transactions have signaled potential price reversals in the crypto market. However, Santiment's analysis suggests that the current cautious whale behavior doesn't necessarily predict a downturn but rather reflects a careful approach in response to anticipated market shifts.

Whale Activity and Market Sentiment A shift in whale activity was observed in August when Bitcoin was trading around $50,000. This rise in transaction volumes, highlighted by Santiment, coincided with an increase in Bitcoin's price over the following months.

However, by late October, the trend reversed. As Bitcoin approached $72,000, whales transitioned from accumulating the leading digital asset to taking profits, reflecting a broader strategy among seasoned investors to sell at higher prices.

Technical Analysis: Key Support and Resistance Levels Adding to the cautious outlook, crypto analyst Michaël van de Poppe identified this week as critical, with both the U.S. election and Federal Reserve (FED) decisions introducing additional uncertainty.

It's the big week!

Elections & the FED.

Last week, the worst job data in 3 years, so I'm assuming that up only season is literally around the corner.

Bitcoin tested the green area for support.

It's hard to tell which way we're moving, expecting some more volatility to come. pic.twitter.com/9pAWzdcZ8F

Van de Poppe pointed to recent bearish data, such as the weakest U.S. job report in three years, which could indicate an increase in volatility in the crypto market.

His analysis highlights Bitcoin's recent high at $73,650 and a pullback near $68,000, which is a crucial support level at the moment.

If the price drops further, there is another support around $64,130, which is essential for maintaining Bitcoin's uptrend. A drop below this could lead to a liquidity zone at $60,748, where buyers may step in to prevent a steeper sell-off.

The RSI is indicating neutral momentum, with no extremes of buying or selling pressure, which aligns with the overall cautious sentiment as traders keep an eye on these levels.

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