Originally published on: August 21, 2024
Bitcoin experienced a dip to a six-month low of around $49,500 on Aug. 5, leading many to wonder if this was a local bottom. Interestingly, historical patterns suggest that in previous US election years, Bitcoin has typically found its local low in the third quarter, often in July or August.
According to technical analyst SuperBro, Bitcoin’s performance in the third quarter of election years, such as 2012, 2016, and 2020, has been followed by strong upward momentum, leading to price rallies and new highs after the presidential elections.
As we approach the high-stakes 2024 election between Donald Trump and Kamala Harris, there is anticipation that Bitcoin may resume its bullish trend. SuperBro’s bullish outlook is supported by the “left-translated cycle” theory, suggesting that Bitcoin’s cycles are starting earlier and possibly reaching their peaks sooner.
With Trump’s positive stance on Bitcoin and potential regulatory changes under different administrations, speculative buying could accelerate, driving prices higher. Recent data also shows that long-term holders are consistently locking in profits, indicating strong market activity.
From a technical perspective, Bitcoin’s bull flag pattern suggests a potential breakout towards $80,000 before the US election. This upward momentum aligns with historical patterns and current market dynamics, hinting at a possible rally in the coming months.
Remember, this article does not offer investment advice. It’s essential to conduct your research and make informed decisions before investing. Sign up for our newsletter to stay updated on market insights and trends.