Why was Bitcoin price down overnight?

Bitcoin price has pulled back over the past three days as the recent rally stalled ahead of next week’s elections.

Bitcoin (BTC) fell 6.60% from this year’s high to $68,762. This decline also triggered further selling among altcoins; Mask Network (MASK), Immutable X (IMX), Doland Tremp and Moo Deng were some of the worst performers.

Bitcoin and these altcoins have fallen, in part because Donald Trump is less likely to win next week’s general election. That’s down from a high of 67% earlier this week to 63%, according to Polymarket.

Trump’s odds have also fallen on other prediction markets like Kalshi and PredictIt. This change likely reflects the fact that all official polls in the swing states remain close to each other, indicating an unpredictable outcome.

Historical survey inaccuracy also contributes to investor caution. In 2016, most polls predicted a Hillary Clinton win, and in the last midterm elections, many polls pointed to a clear Republican victory in Congress, but neither of those things happened.

These concerns explain why many Trump-themed assets have pulled back in recent days. Trump Media and Technology shares are down 35% from this year’s high, and most Trump meme coins such as Trumpcoin, MAGA, and TRUMP are also down.

Trump is considered the most pro-crypto president in recent years. According to Arkham, his crypto portfolio is worth over $6 million. He also promised to make the US a global crypto hub by reducing regulations and pledged to pardon Silk Road founder Ross Ulbricht.

Meanwhile, the odds of Bitcoin hitting a record high have receded in the last few days. These rates have fallen to 83% from this week’s high of $94, according to Polymarket data.

Congratulations to our great Bitcoin users on the 16th Anniversary of Satoshi’s White Paper. We will end Kamala’s war on crypto and Bitcoin WILL BE MADE IN THE USA! VOTE FOR TRUMP! #Bitcoin #FreeRossDayOne

— Donald J. Trump (@realDonaldTrump) 31 October 2024

Bitcoin price has positive technical BTC chart by TradingView

Technical indicators show that Bitcoin may rise further. The latest pullback occurred after Bitcoin approached the key resistance level at $73,777; This is a common point where assets pause after testing key resistance.

Bitcoin formed a golden cross pattern with the intersection of the 200-day and 50-day moving averages.

It also formed an inverse head and shoulders pattern, which is a bullish technical signal. Additionally, ETF inflows reached over $24 billion. Given these factors, Bitcoin is likely to rebound and potentially surpass its all-time high this week.