On October 23, Bitcoin closed at $66,649, down 3.3%, compared to a 0.12% gain in the previous session. Testing buyer demand at the $65,000 level, BTC managed to rebound above the $66,000 level after finding support at the session’s low of $65,161.

The broader cryptocurrency market also reflected this decline, dropping 1.45%, bringing the total market cap down to $2.242 trillion.

Risky assets, including Bitcoin, experienced selling pressure as investors worried about tightening monetary policy. While the Nasdaq Composite Index fell 1.60%, 10-year US Treasury bond yields rose to 4.26%, the highest level since July.

While this situation pointed out the strength of the US economy, it weakened the expectations for multiple Fed interest rate cuts expected in the last quarter of 2024. Uncertainty is adding further pressure to investor sentiment as the US Presidential Election approaches.

Although recent polls show Vice President Kamala Harris with a narrow 1.7-point lead over former President Donald Trump, Trump has significantly closed the previous 3.7-point deficit.

Despite Harris’ lead, betting platform Polymarket gives Trump a higher chance of victory compared to Harris; Trump’s probability of victory is 59.7%, while Harris’ probability is 40.4%.

Despite macroeconomic uncertainties, Bitcoin has rebounded from the $65,000 support level on renewed inflows into spot Bitcoin ETFs, particularly BlackRock’s IBIT fund. This follows a period the previous day when investors experienced $79.1 million outflows on concerns that the Bitcoin rally might lose momentum.

On October 23, 12 spot Bitcoin ETFs recorded net inflows of $192.31 million, while BlackRock’s IBIT fund generated $317.47 million, accounting for the bulk of that amount. This marks the fourth time in six trading days that the fund has attracted more than $300 million in inflows, bringing its total net inflows to more than $23 billion as of Oct. 21.

Grayscale’s Bitcoin Minit Trust also added to the positive sentiment, recording an inflow of $4.71 million. Other ETF products, funds such as ARKB, BITB and VanEck, experienced total outflows of $129.8 million, reflecting a more cautious stance by some market participants.

Despite the price drop on Wednesday, Bitcoin remained above key technical levels such as the 50-day and 200-day exponential moving averages, strengthening bullish signals.

A possible break above the $69,000 resistance level and the October 21 high of $69,402 could lead to a move towards the psychological $70,000 level. If Bitcoin clears the $70,000 level, the bulls may attempt to push the all-time high of $73,808.

However, a decline below $66,500 could reignite the bearish trend and reintroduce the critical $65,000 support level.

A decline below $65,000 could open the door for a deeper correction, with $64,000 being the next key support level. With the 14-day Relative Strength Index (RSI) at 60, Bitcoin has the potential to reach the $70,000 level before reaching overbought conditions.