Although Bitcoin price got some bullish, things could get rocky until after the US Presidential Election concludes
Although Bitcoin price is bullish currently, things could get “rocky” until after the US Presidential Election concludes. But as soon as the winner is chosen, the clarity combined with the asset’s halving has, in the past, provides a solid foundation for each new bull run to begin. At press time, Bitcoin is trading around $ 10.306, a decline of about 2% in the last 24 hours.
Although Bitcoin price is bullish currently, things could get “rocky” in the near future
Bitcoin’s halving is now months behind us, and its time for the stock-to-flow model to prove itself, or fall victim to lengthening cycle theories. Thus far, although there’s only been a small sample size to go by, each halving has resulted in a new uptrend. Each Bitcoin halving takes place roughly every four years, reducing the block reward miners receive in Bitcoin, therefore lowering the supply entering the market.
Various tools developed by Bitcoin fundamental expert Charles Edwards indicate that the cryptocurrency is gearing up for another incredible uptrend. His tools, such as the hash ribbons, have provided investors with some of the most profitable buy signals in the asset’s history.
Edwards has turned several crucial network health metrics into technical analysis indicators. In Edwards’ latest chart, although he’s spared the use of those tools, he’s pointing out that although the crypto asset is indeed bullish, the road ahead for the next few months could be “rocky.”
BTCUSD Daily Presidential Election Final Stretch “Rocky” Price Action | Souce: TradingView
According to Edwards, it is the upcoming United States Presidential election that’s to blame for Bitcoin’s rocky stretch ahead. Past crypto market cycles show that the leading asset by market grows its bullish momentum leading up to the election, then breaks out into “solid” performance afterward.
After the election-related uncertainty and risk are removed from markets, the cryptocurrency rises to a new all-time high. Because Bitcoin has only a short, just over a decade long price history, the sample size for this to occur is small.
But so is the halving. Both the halving and a Presidential election arrives every four years, and we’ll soon find “clarity” on if history will repeat, or if because of how pivotal and polarizing this election is if this time truly is different for Bitcoin.
Bitcoin rally could soon come despite U.S. dollar bounce
The common narrative shared over recent months is that Bitcoin is adversely affected by increases in the value of the U.S. dollar. Case in point: when the dollar began to spike in February and March, BTC began to tumble lower, as did the S&P 500 and the price of gold.
While the U.S. dollar is moving higher, an analyst thinks that Bitcoin may be on the verge of a strong move higher.
He shared the chart below on September 22nd. It shows that the last time the U.S. dollar showed strength and Bitcoin didn’t immediately dump, the cryptocurrency proceeded to surge parabolicly.
Did we see this before?
Yes, before the rally towards 20K in 2017.
Same dollar value, same price action from both & same behaviour from both.
Good example of the correlation not always playing out. pic.twitter.com/939gMODhSQ
— CryptoAmsterdam (@damskotrades) September 22, 2020
Many aren’t convinced that the U.S. Dollar will resume its crash, thereby enabling Bitcoin to run higher. Uncertainty around the next fiscal or monetary stimulus injection could also boost the dollar.
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