Bitcoin is on track for a post-election breakout, according to analysts and historical chart patterns, but the most immediate hurdle is to trade above $70,200.
Analyst says Bitcoin is set for a post-election breakout
Bitcoin’s (BTC) price could be set for a rally following the 2024 presidential elections in the United States.
Based on the previous years, Bitcoin’s price saw a breakout after the US presidential elections in 2012, 2016 and 2020, according to a chart shared by Bitcoin trader Mr. Anderson in a Nov. 4 X post.
Bitcoin/USD, 1-week chart, post-election rally. Source: Mr. Anderson/X
Other analysts expect the post-election volatility to lead to a Bitcoin breakout to new all-time highs. Notably, Bitfinex analysts predict a Bitcoin rally to $80,000 before the end of 2024, driven by the options market structure and the prospect of a Republican presidential victory.
The analysts told Cointelegraph:
“Options market positioning indicates that over the past few weeks, end-of-year options have seen a significant rise in call open interest. The Dec. 27 expiry and calls with an $80,000 strike price have been the primary areas of interest.”
Daily BTC volume throughout the US elections. Source: Standard Chartered Research, Bitfinex
Other analysts say that Bitcoin is used as a proxy for a potential Trump victory and that this current “Trump hedge” rally is lacking the fundamental macroeconomic conditions to result in an all-time high for BTC.
Related: Bitcoin’s fair value: BTC may never fall below $60K, says economist
Bitcoin’s pending price rally depends on conquering $70,200
To confirm a breakout to a new all-time high, Bitcoin needs to surpass $70,200, according to popular analyst Titan of Crypto, who wrote in a Nov. 5 X post:
“Bitcoin Key Level: $70,200. After breaking Tenkan, the price often retests it and right now, Tenkan sits at $70,200. BTC needs to reclaim this level to regain bullish momentum.”
Bitcoin Ichimoku analysis, 1-day chart. Source: Titan of Crypto
In Ichimoku or cloud analysis, the Tenkan line signals a key conversion line for the underlying asset. If Bitcoin remains above the Tenkan line, it will likely signal more upward momentum, based on the indicator.
Other analysts see $69,000 as a key price level that needs to turn into support before a breakout, according to popular crypto analyst Rekt Capital. The analyst wrote in a Nov. 5 X post:
“Bitcoin is going to need to turn $69,000 into new support to confirm a breakout from this Bull Flag.”
BTC/USD, 1-week chart, bull flag. Source: Rekt Capital
On Oct. 28, Bitcoin surpassed the $70,000 psychological resistance for the first time since June 10, with BTC’s price just 3.77% below its all-time high of about $73,800.
Related: Financial institutions want Bitcoin and ETFs: Blockstream’s Adam Back
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is produced in accordance with Cointelegraph's Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research before making any decisions. Cointelegraph makes no guarantees regarding the accuracy or completeness of the information presented, including forward-looking statements, and will not be liable for any loss or damage arising from reliance on this content.
