Bitcoin Holds 100-Day Average Ahead of US Midterms, Jobs Data and Big Tech Earnings

Bitcoin is holding above its 100-day moving average ahead of the US midterm elections, employment data and earnings reports from major technology companies. Still, short-term volatility may increase, given that Bitcoin fell in every fourth quarter that coincided with past midterm election years.

Cointelegraph reported on November 2 that Bitcoin was testing support in the $76,000 range after falling 7.3% last month, marking its weakest October performance since 2014.

Bitcoin is currently trading above its 100-day simple moving average, which stands at about $76,548. It also regained its 100-week exponential moving average of $77,759 ahead of month-end.

Markets are focused on this week's US midterm elections as a key variable. Bitcoin fell 17.3%, 43.5% and 14.8% in the fourth quarters of 2014, 2018 and 2022, respectively, all midterm election years. Still, the comparison has limits because each of those periods took place during a bear market.

Benjamin Cowen, founder of Into The Cryptoverse, said a fourth-quarter correction in a midterm election year could instead offer an opportunity to increase Bitcoin exposure.

US labor data and technology earnings are also set to influence investor sentiment. Markets expect October nonfarm payrolls to have increased by 65,000. Earnings from Apple and Palantir are also due this week, putting recent concerns over expanded AI investment and profitability back in focus.

Trader Rekt Capital said Bitcoin's current chart pattern resembles its recovery after the 2022 bear market. He views the area around a recent low of $76,300 as key support and is watching whether Bitcoin briefly falls below that range before rebounding.