Originally published on: August 21, 2024
After hitting a six-month low of around $49,500 during the recent market turmoil, Bitcoin may have found its bottom in preparation for the upcoming US election. Historical data suggests that Bitcoin tends to hit its local low in the third quarter of US election years, followed by significant price rallies leading to new record highs after the election.
Technical analyst SuperBro predicts that Bitcoin’s bullish cycle may begin earlier than expected, potentially reaching new heights before the November 2024 election. This theory is supported by recent market trends, where Bitcoin’s peak occurred before its fourth halving event in April 2024, contrary to past cycles.
Additionally, factors such as Trump’s positive stance on Bitcoin and potential regulatory changes under different administrations could drive speculative buying, accelerating price increases. Data from the crypto betting service Polymarket even shows improved odds of Trump winning the election, further fueling market speculation.
Long-term holders of Bitcoin have been locking in profits daily, indicating steady capital inflows despite market volatility. This, combined with declining profit-taking activities among long-term holders, suggests that Bitcoin may be gearing up for a rally in the months leading to the election.
From a technical standpoint, Bitcoin is poised for a bull flag breakout, with a potential target of $80,000 by the US election in November. This breakout scenario is supported by Bitcoin’s bullish momentum and historical patterns of price behavior leading up to major events like the US election.
Keep an eye on Bitcoin’s price movements as we approach the election, as it could signal the beginning of a significant uptrend in the cryptocurrency market. As always, readers are advised to conduct their own research and seek professional advice before making investment decisions. Subscribe to our newsletter for more insights on market trends and trading strategies.