In one recent post on Xcryptocurrency analyst Jason Pizzino analyzed the potential effects of the upcoming US elections on financial markets, including Bitcoin and the stock market. He indicates that the race is more exciting than expected, with a clear victory for Donald Trump appearing unlikely. This uncertainty could lead to significant market volatility in the days following the election.
The clock is ticking because tomorrow there are elections. The countdown to the pro-crypto candidate begins with fear in the market as many expect Harris to win Trump. The analyst provided key scenarios and market reactions to the results.
Here’s his insight!
Market reactions to Harris versus Trump
Pizzino predicts different initial market reactions based on the election results. If Kamala Harris secures the presidency, he expects the markets to initially react negatively. However, this decline may be short-lived as investors recognize the influx of stimulus money, which could ultimately fuel a market recovery. On the other hand, if Trump emerges victorious, he expects an immediate rally in the markets, possibly followed by further upward movement.
Current market cycle insights
Pizzino also notes that his analysis does not suggest any significant changes in the market cycle at this time. He is referring to the ‘Winner’s Curse’ phase of an eighteen year cycle, which he has been talking about for several months. This phase typically means greater volatility and opportunity for traders as market dynamics change following a decisive political outcome.
Moreover, Bitcoin is currently recovering from a decline that saw its price drop to the $67,500 zone after starting a fresh decline from $72,500. The price is trying to regain momentum and is trading below $70,500 and the 100-hour moving average.
A recent break above the bearish trendline at $68,300 signals a potential bullish move, with Bitcoin now eyeing resistance around $70,000. If it manages to settle above this level, further gains could push it towards $71,200 and possibly $72,500. However, failure to cross $70,000 could lead to another decline, with immediate support at $68,000 and key levels at $67,500 and $67,200.
The entire crypto market is waiting for the American elections. Will this take BTC to new heights? We’ll know tomorrow.