Bitcoin experienced a notable decline, dropping to $55,777 as of September 11, following a lackluster performance during the recent U.S. presidential debate that left crypto enthusiasts disheartened.
Market Reaction to Political Developments
Data from various market sources revealed that Bitcoin’s price plummeted by $1,000 in just one hour leading up to the daily close, reaching local lows of $56,099 on Bitstamp. The anticipated bullish momentum faltered as neither Republican candidate Donald Trump nor Democratic candidate Kamala Harris provided any compelling insights or commitments regarding supportive cryptocurrency policies during their debate.
Trading firm QCP Capital noted in a message to their Telegram subscribers that the crypto market was let down by the absence of discussions surrounding crypto policy. They cautioned that a “risk-off move in risk assets” could be on the horizon as the U.S. presidential election approaches in November.
CPI Print and Market Sentiment
As the market awaits the August Consumer Price Index (CPI) report, expectations have begun to wane. QCP highlighted that the market anticipates a CPI reading of 2.55%, down from 2.9% previously, suggesting a higher likelihood of an upside surprise. However, they also predicted that the CPI release would have minimal impact on the market as focus shifts toward unemployment data.
Recent unemployment statistics have triggered brief periods of Bitcoin price volatility, yet they have not established a clear trend in either direction. Crypto trader and analyst Michaël van de Poppe commented on X, stating that the current low-timeframe correction is a typical occurrence ahead of CPI events, asserting that Bitcoin would remain stable if it holds within the $55,000 to $56,000 range.
Technical Analysis and Moving Averages
In technical analysis, trader Daan Crypto Trades identified a developing pattern on the four-hour chart, indicating that BTC/USD has struggled to surpass both the 200-period simple moving average (SMA) and the exponential moving average (EMA). These trend lines are currently positioned at $59,200 and $58,840, respectively.
Daan emphasized that whether Bitcoin trades above or below these moving averages is a reliable indicator of market strength or weakness. For a bullish outlook, reclaiming these levels is crucial for Bitcoin to initiate a potential upward bounce.
