Bitcoin price charts are showing familiar patterns seen in previous US presidential election years, and its recent lack of momentum could soon be reversed dramatically, according to one crypto analyst.
“Bitcoin is exhibiting a similar structure,” crypto analyst Matthew Hyland emphasized in an August 16 video analysis. He pointed out that Bitcoin’s recent extended consolidation period, followed by a price drop — which saw Bitcoin fall below $50,000 in early August — bears many similarities to trends that occurred in 2012, 2016, and 2020 ahead of the US presidential elections.
“When you look back to August 2012, we saw a big drop there. Then the market slowly went into the election period, before booming after the election,” Hyland explained.
“This is what I expect to happen. There will probably be a little bit of volatility, not too dramatic, and then in October or November, we will break out of this range,” Hyland predicted, adding that Bitcoin prices will likely remain in the current range “for a little while longer.”
The 2024 United States presidential election is scheduled to take place on November 5.
At the time of writing, Bitcoin is trading at $59,400, down 9.8% since July 18, according to data from CoinMarketCap.
Meanwhile, some traders believe that Bitcoin prices could continue to fall below its current range. “I personally expect Bitcoin to be lower than its current levels before the end of September,” trader Rager Chia in a post on X on August 16. However, he predicted a short-term recovery from the recent drop to $59,000, along with a recovery in the stock market, in “late August” before entering September.
Others suggest that Bitcoin could even return to the $40K range, a level it briefly touched on August 5 at $49,842, in what is now known as “Crypto Black Monday.”
“If the important support level at $56K is lost, we could potentially see new Dip or a retest of $48K,” said MN founder Michael van de Poppe.
However, Markus Thielen, head of research at 10x Research, recommends that Bitcoin investors should patiently wait on the sidelines until the asset's price drops to the low $40,000 region to get the most ideal entry point before the bull market returns.
“To optimize timing for the next bull market, we target a Bitcoin price drop into the low $40,000s,” Thielen wrote in an Aug. 7 report.
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Stone Sanh
According to Cointelegraph
