Bitcoin Price Set for Post-Election Breakout After First Hurdle of Flipping $70K Support

According to analysts and historical chart patterns, Bitcoin (BTC) is on track for a post-election breakout. However, the most immediate hurdle for the cryptocurrency to overcome is trading above $70,200.

Analysts Expect a Post-Election Rally

Historically, Bitcoin’s price has seen a breakout after the US presidential elections in 2012, 2016, and 2020. Based on this trend, analysts predict that the cryptocurrency’s price could surge following the 2024 presidential elections in the United States.

Bitcoin’s Price Movement Post-Election

| Election Year | Post-Election BTC Price Movement |
| --- | --- |
| 2012 | 18% increase from $6.50 to $7.70 |
| 2016 | 37% increase from $650 to $895 |
| 2020 | 15% increase from $10,000 to $11,500 |

As depicted in the chart below, Bitcoin’s price has seen a significant rally post-election. Based on this trend, analysts expect a similar outcome for the upcoming elections.

Bitcoin/USD, 1-Week Chart, Post-Election Rally

Source: Mr. Anderson/Xpost

Options Market Structure Indicates a Potential Rally

Notably, Bitfinex analysts predict that Bitcoin’s price could rally to $80,000 before the end of 2024. This prediction is based on the options market structure and the prospect of a Republican presidential victory.

Options Market Positioning

* 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.

According to Bitfinex analysts, the current "Trump hedge" rally lacks fundamental macroeconomic conditions to result in an all-time high for Bitcoin.

Daily BTC Volume Throughout the US Elections

Source: Standard Chartered Research, Bitfinex

Conquering $70,200 is Key to a Post-Election Breakout

To confirm a breakout to a new all-time high, Bitcoin needs to surpass $70,200. This level serves as a key conversion line for the cryptocurrency’s price movement.

Bitcoin Key Level: $70,200

Source: Titan of Crypto/Xpost

According to popular analyst Titan of Crypto:

"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/Xpost

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.

$69,000 as Key Support Level

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:

"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/Xpost

As depicted in the chart above, Bitcoin’s price has formed a bull flag pattern. Turning $69,000 into support is crucial for a potential breakout.

Historical Significance of the $70,000 Level

On October 28, Bitcoin surpassed the $70,000 psychological resistance for the first time since June 10. The cryptocurrency’s price was just 3.77% below its all-time high of about $73,800.

Bitcoin Surpasses $70,000 Psychological Resistance

Source: Various sources

As discussed earlier, conquering the $70,000 level is crucial for a post-election breakout. Analysts expect a potential rally to $80,000 before the end of 2024 based on the options market structure and the prospect of a Republican presidential victory.

Financial Institutions Want Bitcoin and ETFs

Source: Blockstream's Adam Back

As explored in the article, financial institutions want to invest in Bitcoin and ETFs. This trend suggests that institutional investors are becoming increasingly interested in cryptocurrency investments.

Conclusion

In conclusion, analysts predict a post-election breakout for Bitcoin based on historical chart patterns and the options market structure. However, conquering $70,200 is crucial for a potential rally. Analysts expect a potential price movement to $80,000 before the end of 2024. It remains to be seen whether these predictions will materialize in the coming months.

References

• Mr. Anderson/Xpost
• Bitfinex
• Standard Chartered Research
• Titan of Crypto/Xpost
• Rekt Capital/Xpost