Why did everything plunge after the Democrats won? 📉❓
Nov 6 $BTC : Comprehensive market analysis
👉News:
Markets rose first, then fell after the midterm elections: After the Democrats won both the House and Senate, election uncertainty faded, and BTC briefly rebounded above $80,000 on Nov 4–5. But U.S. tech stocks (especially AI and chip stocks) then pulled back sharply, the Nasdaq plunged, and risk appetite cooled rapidly, with BTC following suit.
The market has started pricing in the possibility that a divided government (a Republican president + a Democratic Congress) could delay crypto regulatory legislation or lead to expectations of stricter regulation.
Some institutions have pushed back their expectations for Fed rate cuts, while macro liquidity expectations have tightened.
Leveraged longs were liquidated (around $370–500M in a single hour).
👉Fund flows:
Spot BTC ETFs: Net inflows of about $74.6M, ending three consecutive days of outflows totaling $1.16B.
Month to date (MTD) in November, flows are still negative, with outflows of about $440M. Net flows for the year are roughly flat or slightly negative.
Institutional flows are clearly divided: Fidelity and others are relatively bullish, while BlackRock is more cautious. Spot selling pressure and ETF outflows are both weighing on prices.
👉Sentiment:
The latest reading is around 28, indicating fear; the closer it gets to 20, the better the buying opportunity.
Long liquidations in derivatives have increased, cooling leverage.
👉Technical analysis:
For the past few days, I’ve been emphasizing the importance of 81,300. Ultimately, both the market and timing confirmed that my view was right.
As for the market now, I personally think the daily chart hasn’t completed its correction yet. Yesterday, I analyzed a head-and-shoulders pattern for you. Next, we should watch whether the 75,000 level can hold. If it doesn’t, the price could move within the 67,000–70,000 range.
So personally, I think those who are currently out of the market can buy a little at this level. But if your position is already relatively full, you can wait a bit longer.
$BTC
Nov 6 $BTC : Comprehensive market analysis
👉News:
Markets rose first, then fell after the midterm elections: After the Democrats won both the House and Senate, election uncertainty faded, and BTC briefly rebounded above $80,000 on Nov 4–5. But U.S. tech stocks (especially AI and chip stocks) then pulled back sharply, the Nasdaq plunged, and risk appetite cooled rapidly, with BTC following suit.
The market has started pricing in the possibility that a divided government (a Republican president + a Democratic Congress) could delay crypto regulatory legislation or lead to expectations of stricter regulation.
Some institutions have pushed back their expectations for Fed rate cuts, while macro liquidity expectations have tightened.
Leveraged longs were liquidated (around $370–500M in a single hour).
👉Fund flows:
Spot BTC ETFs: Net inflows of about $74.6M, ending three consecutive days of outflows totaling $1.16B.
Month to date (MTD) in November, flows are still negative, with outflows of about $440M. Net flows for the year are roughly flat or slightly negative.
Institutional flows are clearly divided: Fidelity and others are relatively bullish, while BlackRock is more cautious. Spot selling pressure and ETF outflows are both weighing on prices.
👉Sentiment:
The latest reading is around 28, indicating fear; the closer it gets to 20, the better the buying opportunity.
Long liquidations in derivatives have increased, cooling leverage.
👉Technical analysis:
For the past few days, I’ve been emphasizing the importance of 81,300. Ultimately, both the market and timing confirmed that my view was right.
As for the market now, I personally think the daily chart hasn’t completed its correction yet. Yesterday, I analyzed a head-and-shoulders pattern for you. Next, we should watch whether the 75,000 level can hold. If it doesn’t, the price could move within the 67,000–70,000 range.
So personally, I think those who are currently out of the market can buy a little at this level. But if your position is already relatively full, you can wait a bit longer.
$BTC
