The unfolding of the US election is currently creating significant fluctuations in the cryptocurrency market, especially affecting Bitcoin. Recent reports highlight that Bitcoin ETFs experienced one of their most challenging days historically, with a staggering outflow of $541 million occurring just yesterday. This substantial outflow triggered sell pressure, leading to a brief decline in Bitcoin’s price.
Despite this short-term setback, Bitcoin has confirmed a new bullish divergence on the charts. This development signals potential short-term price strength, indicating that the digital currency might be poised for a rebound in the near future.
Bitcoin’s Long-Term Election Trend
Renowned analyst Josh from Crypto World has emphasized that examining Bitcoin’s price behavior during previous US elections reveals a consistent pattern of bullish trends in the aftermath of electoral events. Historically, over the last three election cycles, Bitcoin has tended to rise following elections, irrespective of whether the victory belonged to a Democrat or a Republican.
This pattern typically involves a bull market emerging shortly after the election, followed by a bear market, then a recovery phase, ultimately resulting in Bitcoin’s price trending higher. Based on this historical data, it appears that regardless of who wins the 2024 election, be it Harris or Trump, Bitcoin might witness a bullish market trajectory in the upcoming year.
In the short term, Bitcoin has encountered some resistance at crucial levels, ranging from $72,000 to $74,000. However, it is finding support between $66,700 and $68,300. Should Bitcoin manage to break above the $74,000 mark, it could potentially reach unprecedented all-time highs.
Ethereum Price Analysis
Turning our attention to Ethereum (ETH), the 3-day chart reveals that ETH is currently caught in a sideways trading range. Support levels are present around $2,150 to $2,200, while resistance is encountered around $2,800. Over the past day, ETH experienced a dip below a critical support level, which has now transitioned into resistance at approximately $2,440 to $2,475. If the price rebounds, it may face challenges in breaking through this resistance.
Solana Price Analysis
Finally, an analysis of Solana (SOL) on the daily chart shows that it recently closed below $159, a bearish indicator. However, if Solana can swiftly reclaim this level, the recent drop may be a false breakout, and the price could recover. Conversely, if Solana fails to regain this level, the price could potentially slide towards $150, with additional support expected around $137 to $142.
In conclusion, the interplay between US elections and the cryptocurrency market is intriguing and complex. As history suggests, elections can influence market trends, and while short-term volatility is expected, the long-term outlook remains promising for digital assets like Bitcoin, Ethereum, and Solana. Investors should stay informed and vigilant as these events unfold, keeping an eye on key support and resistance levels to make well-informed decisions.
