Bitcoin Price Prediction: Why a Return to Pre-Election Level Seems Unlikely

As a seasoned analyst with over two decades of market analysis under my belt, I’ve seen my fair share of market fluctuations, from the dot-com bubble to the 2008 financial crisis. However, the cryptocurrency market, especially Bitcoin, continues to surprise me with its resilience and potential for growth.


On Wednesday, as Donald Trump reached the required 270 electoral votes and was declared the 47th U.S. President, there was an unexpected surge in the cryptocurrency market. This sudden increase led the BTC price to skyrocket by 8.8%, reaching a new peak of $75,397, and pushing the total market capitalization close to $1.5 Trillion. Given that Bitcoin‘s price has not fallen back to its pre-election levels based on historical data, this could potentially indicate an opportunity for investors to accumulate.

Bitcoin Price Prediction: Pre-Election Levels May Never Be Seen Again

On November 6th, there was a noticeable increase in optimistic energy in the cryptocurrency market due to Donald Trump’s victory in the U.S. presidential election. This upswing is thought to be driven by Trump’s supportive views on cryptocurrencies during his campaign and anticipation of more favorable regulations for the digital market.

Over the years following its creation in 2009, Bitcoin’s price trends have demonstrated remarkable accuracy during U.S. elections, consistently reaching new peaks and not returning to previous levels after an election. As per QCP Capital’s analysis, the past three electoral outcomes have spurred Bitcoin prices to unprecedented heights.

Today’s robust buying activity within the cryptocurrency market serves to strengthen the bullish argument, boosting investor confidence that we may witness a bull market by 2025.

BTC Recovery May Extend as Whale Accumulation Intensifies

Based on information from Lookonchain, it appears that 11 significant cryptocurrency investors (often referred to as “whales”) have purchased roughly 1,807 Bitcoins (equivalent to around $132 Million) from the crypto exchange Binance following the election results.

Bitcoin Price Prediction: Why a Return to Pre-Election Level Seems Unlikely

A crypto whale has executed a significant long position on Bitcoin using recursive borrowing. The associated wallet borrowed $27M from DeFi lending protocol Aave to buy 366.31 WBTC at an average price of $73,708.

Even with Bitcoin reaching a new peak, the intense purchasing by major investors suggests they anticipate a continued increase in BTC’s price forecast. Traditionally, such buying sprees by ‘whales’ have boosted market rebound and bolstered investor confidence.

BTC Price Analysis Hints Major Rally Amid Flag Breakout

Over the last eight months, the estimated value of Bitcoin has moved horizontally, finding it difficult to climb above the $73,800 mark. The horizontal movement on the daily graph suggests the development of a well-known bullish trend known as ‘Flag.’

Over the past two months, Bitcoin’s price prediction saw a significant upward trend. Starting at around $53,730, the asset climbed to $74,000 – a remarkable 60% increase. This impressive rise also resulted in a breakout above the crucial resistance level in technical terms, which suggests that there might be more growth potential ahead.

Should the trend persist, it’s possible that the value of Bitcoin may rise by approximately 35%, potentially reaching a new high of $100,000.

Bitcoin Price Prediction: Why a Return to Pre-Election Level Seems Unlikely

If the breakdown occurs and the Bitcoin price falls within the flag’s range, the sellers might gain more control over this asset due to their increased influence.

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2024-11-06 17:21