The price of Bitcoin is facing a crucial test at $76,000, with divergent momentum indicators, and market sentiment has turned bearish.
Against the backdrop of uncertainty in the U.S. mid-term elections, a weakening U.S. dollar, and declining yields on U.S. Treasury bonds, gold and silver are strengthening.
Since Binance suffered a $6.3 billion hacker attack, the crypto market, especially the price of Bitcoin, has been under immense pressure. Although there was some temporary relief for tokens, the mid-term elections in the United States have added another layer of uncertainty. As election forecasts continue to emerge, the social sentiment towards Bitcoin has turned bearish, while gold and silver have regained support. This has led to a clear divergence in the financial markets.
As the outcome now favors the Democratic Party, investors are closely watching the potential impact of changes in congressional control on crypto regulation and broader economic policies. This reversal raises an important question: is Bitcoin losing favor among retail traders, while precious metals are benefiting from the demand for traditional safe-haven assets, or is this just a short-term divergence?
Bitcoin sentiment continues to weaken
In the past few days, this ratio was around 1.8, which means that for every bearish comment, there were nearly two bullish comments. However, as the market weakened, sentiment gradually deteriorated. Subsequently, this ratio dropped to 0.37, indicating a significant increase in bearish comments, which have now outweighed bullish discussions.
BTC Bulls attempt a rebound, but the capital flow has not been confirmed.
After a recent decline, the price of Bitcoin has shown signs of stabilizing in the short term, with the daily chart indicating a rebound to $78,400. The chart shows that there is a key support area between $75,000 and $75,700, where buyers have entered to defend this region. This popular cryptocurrency recently tested this area before rebounding to $78,409. Currently, the resistance level is around $81,818, which is an important level that bulls need to regain in order to enhance the prospects for a rebound.
RSI is forming consecutive lower highs and lows, while the recent divergence from the lower levels has brought some hope. On the other hand, CMF tells a different story: it has remained slightly below the zero line and has not been able to rise above that range. The increase in RSI indicates that price momentum is improving, but CMF shows that buying pressure is still not sufficient to confirm meaningful capital accumulation.
To continue the bullish momentum, the price of BTC needs to break through the newly formed resistance level of $78,740; if it is rejected again, the price may fall below $76,000.
U.S. election results suppress the dollar; gold and silver strengthen again
While Bitcoin continues to face bearish sentiment from retail investors, gold and silver have shown new strength. With the results of the U.S. mid-term elections causing changes in the dollar and U.S. Treasury yields, both precious metals have seen increases. Gold prices have once again surpassed $4,000, with a gain of over 4%; silver soared by 3.8% to $51.67. The victory of the Democratic Party in the mid-term elections led to a weakening of the U.S. dollar and a decline in U.S. Treasury yields, which drove these increases.
The upcoming important catalysts include the upcoming release of U.S. employment data, as well as new signals regarding the Federal Reserve's interest rate prospects. As the market digests the election results, it will be worth watching whether gold can hold above $4,000 and whether silver can continue its upward trend.
As gold and silver strengthen, can Bitcoin rebound?
Despite rebounding from the $75,000 support level, Bitcoin still faces bearish sentiment among retail investors. The RSI indicator shows that momentum is improving, but negative readings on the CMF indicator indicate that buying pressure remains weak. A break above $81,818 could strengthen the outlook for a rebound; however, if it falls below this support level, the BTC indicator may suggest further declines.
At the same time, against the backdrop of a weakening US dollar, declining yields on US Treasury bonds, and increased uncertainty after the elections, gold and silver are strengthening. Their divergent performance highlights changes in market sentiment, but it does not prove that funds are directly flowing out of the crypto market.
The market will next focus on whether Bitcoin can overcome the bearish sentiment and whether precious metals can maintain their upward trend.
