Bitcoin reached its all-time high price in March 2024, when it reached $73,700.
A victory for Donald Trump would cause bitcoin to skyrocket, according to several analysts.
Bitcoin (BTC), the main digital currency on the market, has been “prisoner” within a bearish channel since March 2024.
As can be seen in the following graph, provided by TradingViewafter marking its all-time high close to $74,000, BTC had entered a downtrend that it had not managed to get out of… until now.
In trading, a bearish channel forms when the price of an asset, such as bitcoin, moves in a downward trend defined by two parallel lines: an upper resistance line that limits the highs and a lower support line that marks the lows.
These lines connect consecutive peaks and troughs in price and generate a visible swing range within which the asset is “trapped” in its decline.
Traders use this pattern to identify the direction and pace of a negative trend, which generally discourages massive buying of the asset until a clear change is seen.
The breakout of upper resistance in a bearish channel it is interpreted as a signal that the price could have exhausted its correction phase and, instead of continuing to fall, it may begin a recovery or growth phase.
Such an event usually attracts the attention of buyers and analysts, who see it as an investment opportunity with positive expectations. By overcoming the resistance, as explained in the Cryptopedia (educational section of CriptoNoticias), the price of bitcoin generates a new dynamic of confidence in the market, which tends to attract more purchase volume.
This breakup enables bitcoin to seek new highs because it breaks the psychological and technical barrier that had been limiting its rise. With this movement, possible new price levels are projected that usually act as magnets for the market, driving buying pressure.
As explained this morning, macroeconomic news that will be known this week and the results of the presidential elections in the United States next Tuesday will have an impact on the behavior of investors and, therefore, on the price of bitcoin.
In general, short-term expectations are bullish for bitcoin in the event of a victory by Donald Trump (Republican) and bearish in the event of a victory by Kamala Harris (Democrat).
Likewise, for the medium and long term there are mostly bullish expectations with bitcoin, regardless of who the winner of these presidential elections is.
For example, Matthew Sigel, head of research at financial company VanEck, anticipates that bitcoin will grow an average of 16% annually over the next two decades, which would take it to worth 3 million dollars by 2050.
