Analysts predict that Bitcoin prices will rebound with strong momentum in early 2025, but the U.S. presidential election will affect Bitcoin bulls until Inauguration Day, Cointelegraph reported.
New forecasts show that Bitcoin will rally “on top of the macro trend,” but this will only happen in 2025.
In his latest X content on Nov. 4, Keith Alan, co-founder of trading resource Material Indicators, said the U.S. presidential election will have an impact on Bitcoin price action within two months.
Bitcoin will outperform macro trends “no matter what”
Bitcoin traders remain braced for volatility and unexpected moves heading into U.S. Election Day, but some are already looking beyond the outcome.
For Allen, a Trump victory would trigger a “visceral reaction” in Bitcoin/USD, while the opposite would occur if the Democrats remain in power.
“Bitcoin will not reach new highs until the votes are counted,” he concluded in one of four “hypotheses” about short-term Bitcoin price performance.
Allen noted that various support lines, including the April 2021 interim high and the 21-day simple moving average (SMA), failed to form effective support, and $69,000 also failed to become support.
“Technical support at the 50-day moving average is gaining attention, and secondary support at the 21-week moving average is also looking bullish, but volatility could destroy the technical picture,” the post acknowledged.
Outlook
Looking ahead, Bitcoin could face long-term troubles due to geopolitical shifts.
The market may need to wait until the new government officially takes office before it can outperform again, which will happen in mid-January.
“We will not be immune from this ‘storm’ of politically induced anxiety, stress, disruption, or market volatility until Inauguration Day on January 20,” Allen concluded.
“Regardless of who wins the 2024 election, Bitcoin will return to its macro-trend-outperforming trajectory by Q2 2025.”
Bitcoin price trendline seen as downside support
As Cointelegraph continues to report, market participants still believe that Bitcoin will reach new all-time highs.
Some forecasts suggest a major price discovery event will occur in the coming months, including reaching $100,000 by early 2025.
Last week, the price of Bitcoin/USD almost matched the current record set in March.
“If things start to get bad, don’t rule out a pullback to the 50-week moving average and potential macro trendlines,” Material Indicators warned in its post.
