Bitcoin $59K price may swing ‘drastically’ amid election year parallels

2024-08-23 07:17:27 Primitive Reading

Bitcoin’s price chart is mirroring patterns seen in previous United States election years, and its recent lack of momentum could be significantly reversed, according to a cryptocurrency analyst.

“Bitcoin has seen the same sort of structure,” crypto analyst Matthew Hyland pointed out in an Aug. 16 analysis video. He explained that Bitcoin’s recent extended consolidation followed by a downturn— which saw Bitcoin fall below $50,000 at the beginning of August — is similar to patterns seen in 2012, 2016, and 2020 ahead of US presidential elections.

Crypto analyst highlights similar patterns in previous election years

“I’ll go back to August 2012, a massive crash right here. Then we slowly moved into the election before moving up drastically after the election,” Hyland added.

“This sort of path is what i’m expecting. A little choppy, nothing too crazy, then probably October, November, we’ll move out of this range,” Hyland added, predicting that Bitcoin’s price will remain in its current range for “a little bit longer.”

The 2024 US presidential election is scheduled for Nov. 5.

Crypto analyst Matthew Hyland believes Bitcoin will stay in its current range for a “little bit longer.” Source: Matthew Hyland

At the time of publication, Bitcoin is trading at $59,089, down 9.78% since July 18, according to CoinMarketCap data.

Meanwhile, some traders believe there may be further downside below its current range. “Personally I think Bitcoin price will be lower than its current price before the end of September,” crypto trader Rager wrote in an Aug. 16 X post. However, he anticipates a short-term recovery from the recent dip to $59,000, along with the stock market, in “late August” before heading into September.

Some traders see $40,000 range as possible

Others believe Bitcoin may revisit the $40,000 range, a level it briefly reached on Aug. 5 at $49,842, on what’s now called “Black Crypto Monday.”

“Holding a crucial level of support, losing $56K and we will likely see new lows or a retest at $48K,” MN founder Michael van de Poppe added.

However, 10x Research head of research Markus Thielen suggested that Bitcoiners should wait on the sidelines until the asset’s price falls to the low $40,000 zone to get the best entry price ahead of the next bull run.

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