Bitcoin price chart is showing patterns similar to those observed in past U.S. election years, and its current stagnation could see a significant shift, according to a cryptocurrency analyst.
Bitcoin has displayed the same kind of structure, crypto analyst Matthew Hyland noted in an Aug. 16 analysis video. He pointed out that Bitcoin’s recent extended consolidation followed by a downturn – where it dropped below $50,000 at the start of August – mirrors patterns seen in 2012, 2016 and 2020 before U.S. presidential elections.
Crypto analyst draws parallels to previous election years
“In August 2012, there was a major crash. Then we gradually moved toward the election before a sharp increase afterward”, Hyland observed.
I expect a similar path – some volatility, nothing too extreme – then likely in October or November, we’ll break out of this range, Hyland predicted, while suggesting that Bitcoin’s price will stay within its current range for “a little bit longer”.
The 2024 US presidential election is scheduled for November 5.
As of the time of writing, Bitcoin is trading at $59,089, down 9.78% since July 18, according to CoinMarketCap data.
Meanwhile, some traders anticipate further declines below the current range. “I personally think Bitcoin’s price will drop further before the end of September,” crypto trader Rager mentioned in an Aug. 16 X post. However, he expects a brief recovery from the recent dip to $59,000, alongside the stock market, in “late August” before moving into September.
Read more: Reasons Behind the Decline in Dogecoin and Shiba Inu Prices Today
Some traders see the $40K range as possible
Others believe Bitcoin may revisit the $40,000 range, a level it briefly touched on Aug. 5 at $49,842, during what is now referred to as “Black Crypto Monday.”
“If the crucial support level of $56K is lost, we could see new lows or a retest at $48K,” MN founder Michael van de Poppe added.
However, Markus Thielen, Head of Research at 10x Research, suggested that Bitcoiners should wait on the sidelines until the asset’s price drops to the low $40,000 range to secure the best entry point ahead of the next bull run.
“To ideally time the next bull market entry, we’re aiming for Bitcoin prices to fall into the low $40,000s,” Thielen wrote in an Aug. 7 report viewed by Cointelegraph.
Cre: cointelegraph
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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