• BTCUSD capped by its 20-period SMA at 68,625.
• Price trapped in short-term bearish channel
• A surge above 70,000 could shift the bias to positive

BTCUSD (Bitcoin) has been sailing in choppy waters since the peak at a seven-month high of 73,609 recently finding a footing at the lower boundary of a bearish channel in the four-hour chart.

As Election Day unfolds in the US, there’s growing speculation that a potential Trump victory might provide a tailwind for cryptocurrencies. However, Bitcoin’s price action is far from being a clear-cut bullish signal just yet, and from a technical perspective caution remains among investors. Specifically, although the RSI has bounced off its 30 oversold level, it has yet to pierce through its 50 neutral mark, suggesting that buying sentiment is not strong enough to flip the bearish trajectory.

Bitcoin has already encountered resistance around the 20-period simple moving average (SMA) multiple times over the past week and traders will be watching closely to see if the price can finally push through this barrier seen around 68,600.

If the bulls manage to successfully conquer the 20-SMA, they could next target the upper boundary of the bearish channel at 70,000, where the 50-period SMA is also looming. A breakthrough here would set the stage for a move towards 71,550.

If the price fails to break above 20-SMA, the price could retreat toward the channel’s lower boundary at 66,300, which coincides with the 200-period SMA. If there is no support there this time, selling appetite could accelerate toward the 65,150 barrier and then down to 63,780.

While Bitcoin’s recent rally has sparked some optimism, it’s clear that the market remains in a precarious position. A decisive move above 70,000 would be needed to brighten the outlook and give the bulls a chance to roar back.