Bitcoin set for post-election breakout, but flipping $70K to support is the first hurdle
2024.11.05 12:09
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 say Bitcoin is set for a post-election breakout
Bitcoin (BTC) price could be set for a rally following the 2024 presidential elections in the United States.
Based on the previous years, Bitcoin price saw a breakout after the US presidential elections in 2020, 2016 and 2012, 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
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 December 27th 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 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.
