As a seasoned crypto investor with over a decade of experience navigating various market cycles and political climates, I find myself optimistic about Bitcoin’s prospects, especially amidst the looming U.S. presidential election. The economic indicators seem to favor a bullish outlook for Bitcoin, with a potential Trump victory potentially providing a significant boost.
Following its return within the boundaries of the “bull flag” on Wednesday, the price of Bitcoin subsequently bounced back to end the day above the trendline of this bullish pattern. With just two weeks remaining until the U.S. presidential election, the momentum appears to be in favor of Republican candidate Donald Trump. If he wins, it’s predicted that Bitcoin could flourish.
Election and economy provide potential boosts to Bitcoin
The upcoming U.S. presidential election is rapidly approaching, and the race remains very close. According to conventional polls, both candidates are virtually tied, while Polymarket shows Trump leading with 60.1% to 39.9%. However, it’s worth noting that all seven crucial swing states seem to be leaning towards Trump, and early voting trends also suggest an advantage for the Republican candidate. Nevertheless, the next few days could bring unexpected developments.
Economically speaking, things appear to be improving, at least superficially. Inflation has dipped to its lowest level in three years, and the stock market continues to reach new heights. However, on the downside, unemployment claims are climbing, and there’s a lingering fear that inflation might start rising again.
Recent reversal still bullish for Bitcoin
As of now, the price of Bitcoin has climbed back above a key trendline within its short-term outlook. On Wednesday, the price dipped below this line and reached as low as $65,400, which is a significant support level based on Fibonacci retracement. However, if the price only drops to this point, it’s a positive sign for Bitcoin, indicating that buyers are not ready to let the price fall further down to the 0.618 or 0.786 Fibonacci retracement levels, which represent even deeper potential drops.
At present, the Bitcoin price appears to have found a solid base of support, with the bull flag trendline situated slightly below. This could potentially signal a continuation of the upward momentum. However, should the market take a downturn once more, there are robust levels of support at approximately $66,000, $65,400, and $64,000 to help stabilize the price.
The importance of the 0.618, and 0.786 Fibonacci levels
As a crypto investor, I’ve been closely watching the daily trends of Bitcoin (BTC). The Fibonacci levels in the bull flag move have been telling an intriguing tale. Recently, the price didn’t quite manage to surpass the 0.786 Fibonacci level at the peak. Moreover, the 0.618 Fibonacci level seems crucial, as it could potentially influence the market if a breakout occurs. It wouldn’t shock me if, after a potential breakout, the price dips back down to this $64,400 mark.
By shifting the Fibonacci sequence to a weekly chart and factoring in the previous peak of the bull market, it’s worth highlighting that the 0.786 Fibonacci level seems significant again. This potential resistance or support level may serve as the foundation for the subsequent bull market structure.
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2024-10-24 13:03