Bitcoin price set to enter next phase of bearish price action

Bitcoin (BTC) price action is not in a sweet spot this week as markets were rattled once again by events in the United Kingdom. Although initially, one would think it has nothing to do with cryptocurrencies, the problem with the UK is that it is on the brink of collapse. During her 45-day tenure, Prime Minister Truss succeeded in almost pushing the UK bond market into the abyss. If the BoE had not stepped in, the IMF would have had to make sure no spillover effects touchedEurope, the US and Australia, risking a blood bath in the markets with cryptocurrencies as one of the casualties of the meltdown.

BTC price has a soft side toward geopolitics

Bitcoin price action, aside from the turmoil in the markets, arguably had it coming anyway after its firm rejection by the 55-day Simple Moving Average (SMA). That happened on Tuesday as the political issues escalated again in the UK, until finally Truss was forced to resign on Thursday. With the political field now wide open, the UK is at the mercy of the markets with downside pressures coming from all quarters.

BTC price action is thus set to slip firmly below $19,036 and enter back into that lower area tested in September. A return of $18,000 would make sense, as that would be around the low of September 21, 2022. Overall, and depending on the evolution in the coming weeks, traders best prepare for $16,000 to be on the quote board by mid-November.

 BTC/USD Daily chart

The only straw that bulls have to hang on to is that earnings season next week could bring some positive returns together with the fact that the new economic plan from the new finance minister Hunt will be rolled out – either with or without a new PM in office. That should help calm the markets, and we could see some bulls returning to the scene. A return to $19,662 could be on the cards, along with a retest once again of the 55-day SMA and that red descending trend line.