Bitcoin Slips Ahead of US Midterms, Corporate Earnings; $76,000 Support in Focus

Bitcoin fell despite growing expectations for a diplomatic resolution between the US and Iran, as investors stayed cautious ahead of the US midterm elections and major corporate earnings reports.

Cointelegraph reported on November 2 that Bitcoin climbed to $78,750 after the weekly trading close, but selling pressure later intensified, widening its daily loss to 1.7%. Prospects for a diplomatic breakthrough between the US and Iran came into sharper focus, but sentiment across risk assets failed to recover.

US Secretary of State Marco Rubio said President Donald Trump wants to resolve the conflict with Iran through diplomacy. West Texas Intermediate crude fell as low as $95.15 a barrel during the session, while Brent dropped about 9%. Still, geopolitical uncertainty remained because Trump has not fully ruled out a military response.

US stocks opened higher on lower oil prices, but gains were limited ahead of earnings from major technology companies. Investor focus was on third-quarter results from Apple and Palantir, while concerns over the cost and profitability of artificial intelligence investment constrained a rebound in risk assets. Gold, by contrast, rose about 2% to reclaim $3,950 an ounce.

Economist Robin Brooks said recent weakness in gold prices was closely tied to a sharp rise in oil driven by the Middle East conflict. He added that gold could extend its gains if oil continues to fall.

From a technical standpoint, whether Bitcoin can hold support at $76,000 has emerged as a key variable. Crypto analyst Rekt Capital said Bitcoin failed to break above resistance at $78,500 on the three-day chart and warned that it could fall below $76,000 in the near term.

Crypto trading firm QCP Capital also identified the $76,000 to $76,600 range as a key support zone. The area has seen four rebounds since September, making it important to watch whether buying demand returns.

For a rebound to take hold, Bitcoin needs to recover the $79,500 to $80,500 resistance band. QCP Capital said that if Bitcoin closes back above $79,500 on a daily basis, it could reclaim the range it recently lost.