Can Bitcoin Break Through the $65,200 Level? The 2024 US Election Could Be a Key DriverAfter briefly spiking to $62,700 at 10 PM last night, Bitcoin bounced back and rallied higher, reaching $64,698 around 7 AM this morning. It seems like the cryptocurrency is quickly approaching the $65,000 mark
Can Bitcoin Break Through the $65,200 Level? The 2024 US Election Could Be a Key Driver
After briefly spiking to $62,700 at 10 PM last night, Bitcoin bounced back and rallied higher, reaching $64,698 around 7 AM this morning. It seems like the cryptocurrency is quickly approaching the $65,000 mark. However, concerning the future direction of Bitcoin, a Bitfinex exchange analyst stated in an interview yesterday that the current rebound doesn't necessarily confirm the end of the long-term downtrend. Further observation is needed to see if Bitcoin can break through the $65,200 relative high of August 25th.
Breaking through the $65,200 August high is crucial for confirming the end of the long-term downtrend. This resistance level is significant because Bitcoin has been in a downtrend since hitting an all-time high of $73,666 on March 14th this year. The $65,200 level represents a high point from before the decline in early September. Breaking through this level signifies the formation of a bottom.
So, what factors might influence Bitcoin's future trajectory? Besides its technical indicators, the upcoming 2024 US presidential election cannot be ignored. Bitcoin and the S&P 500 have historically maintained a strong correlation, particularly during Bitcoin's bull market cycles and periods of overall risk-on sentiment in traditional markets. The S&P 500 Index typically reacts positively after a US presidential election.
This pattern has consistently held across decades, with the stock market often experiencing significant gains in the year following elections.
- 2012 Election: In November 2012, the S&P 500 Index was up by 11% year-over-year. A year later, this gain surged to around 32%, reflecting a strong post-election market rebound.
- 2016 Election: In November 2016, the S&P 500 Index increased around 7% year-over-year. A year later, the index gained approximately 22%, again demonstrating a significant increase after the election.
- 2020 Election: The pattern continued in 2020. In November 2020, the S&P 500 Index saw a gain of around 17-18%. By the following year, the index had climbed nearly 29%.
As the 2024 US presidential election approaches, the market is watching closely for related fluctuations and performance in Bitcoin. If the historical trend holds, we might see a significant price surge.
- Example: If we experience the same percentage gain in the 365 days following the election as we did in 2012, Bitcoin's price could reach $1,000,000 or more.
- If we see a similar scenario to the 2016 election, we could climb to around $500,000, while something similar to 2020 could see BTC at $250,000.
Of course, this is just speculation based on past trends. Bitcoin's price fluctuations are influenced by numerous factors, such as regulatory policies, market sentiment, technological developments, and more. The ultimate outcome will depend on future actual events.
However, it's undeniable that the 2024 US presidential election will be a significant point of observation for the cryptocurrency market, especially for Bitcoin.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
