Could Bitcoin Hit $80,000 Before the US Election?
The recent decline in the price of Bitcoin to approximately $49,500 could indicate a potential bottom, reminiscent of previous United States election years wherein Bitcoin typically reached its lowest point in the third quarter. Analysts are currently contemplating the likelihood of Bitcoin reaching a new record high prior to the November 2024 election.
Renowned technical analyst SuperBro highlighted the historical trend of Bitcoin’s third-quarter lows in election years resulting in robust upward momentum and subsequent new record highs after the presidential elections. This has generated mounting expectations that Bitcoin may follow a similar pattern leading up to the 2024 election, potentially achieving a new all-time high.
SuperBro’s optimistic outlook is bolstered by the “left-translated cycle” theory, which proposes that Bitcoin’s bullish cycles are commencing earlier and reaching their peaks sooner than in previous cycles. This is evident from Bitcoin’s most recent peak, occurring a month before its fourth halving in April 2024, a departure from past cycles.
The potential for Bitcoin to initiate its ascent earlier than conventional market participants anticipate, possibly attaining a new record high before the election, could catch investors off guard. There is a concern that individuals who are slower to adapt to evolving market dynamics might miss out on the initial stages of the rally.
Fundamentally, the positive stance of the former President Trump on Bitcoin and potential regulatory alterations under different administrations could stimulate speculative purchasing and result in heightened price escalation.
Conversely, long-term holders (LTHs) of Bitcoin have consistently locked in approximately $138 million in profit per day during the recent stagnant trend, indicating a steady influx of capital into the market that has contributed to stabilizing Bitcoin’s price. This consistent profit-taking behavior, along with a diminishing realized profit/loss ratio, indicates the possibility of Bitcoin embarking on a rally in the months leading up to the election.
From a technical standpoint, Bitcoin’s price has been trending within a bull flag pattern, confirmed by its correction inside a descending parallel channel following a robust uptrend. This formation augments Bitcoin’s probability of sustaining its bullish momentum, with potential for a breakout to around $80,000 by the US election in November.
It is imperative to acknowledge that this article does not include investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research before making any decisions.
Post Comment