Bitcoin’s (BTC) recent price action might be eerily similar to what happened in previous U.S. election years, according to cryptocurrency analyst Matthew Hyland. In a video analysis on August 16th, Hyland pointed out a familiar pattern: an extended period of consolidation followed by a dip – just like what we’ve seen with Bitcoin in 2024 leading up to the November 5th presidential election.
Hyland isn’t the only one drawing parallels to past election cycles. Looking back at the charts, we see a similar trend in 2012, 2016, and 2020. In each of those years, Bitcoin experienced a downturn in the months leading up to the election, followed by a significant upswing afterwards.
“I’ll go back to August 2012, a massive crash right here,” Hyland explains in the video, pointing to a historical chart. “Then we slowly moved into the election, before moving up drastically after the election.”
This time around, Hyland predicts a similar trajectory for Bitcoin. He expects the price to remain in its current range “for a little bit longer,” with some potential choppiness, before a breakout in October or November.
While Hyland sees a potential pre-election surge on the horizon, other traders are bracing for a different outcome. Crypto trader Rager anticipates a short-term bounce in late August, aligning with the stock market, but predicts a further dip below current levels by the end of September.
Some analysts, like Michael van de Poppe of MN创始人不 (MN Zhuangshibu Renshi), believe a retest of the $48,000 mark, or even a plunge into the $40,000 range – a level briefly touched on “Black Crypto Monday” (August 5th) – could be in the cards if Bitcoin loses crucial support at $56,000.
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Meanwhile, 10x Research head of Research Markus Thielen suggests that waiting for a deeper drop into the low $40,000 zone might present the best entry point for investors looking to capitalize on the next bull run.
With the U.S. election just around the corner, all eyes are on Bitcoin. Will history repeat itself, or will this election year bring a different story for the world’s most popular cryptocurrency? Only time will tell.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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