Bitcoin Faces Threat Of Falling To $63,000 Despite Rising Odds For Trump’s Election Victory

As the United States braces for the outcome of the closely contested presidential election between former President Donald Trump and Vice President Kamala Harris, Bitcoin (BTC) has experienced a price drop, now hovering around the $68,000 mark. 

Bitcoin has struggled to surpass its all-time high of $73,700, a level achieved in March following the approval of exchange-traded funds (ETFs) that invest in the cryptocurrency. Despite several attempts to breach this mark, Bitcoin has faced resistance, leading to a current price correction.

Should it fail to maintain its position above $68,000, it may revisit the $66,600 support level, with a further drop potentially taking it down to $63,000—an important threshold in the near term. 

Despite the current price challenges, many analysts maintain a bullish outlook for Bitcoin. Crypto analyst Ali Martinez notes that the days following past US presidential elections have historically shown volatility for Bitcoin; however, the overall trend has remained upward. 

This analysis suggests that if this pattern holds true in the current election cycle, Bitcoin might retest its previous highs with potential for price discovery above the milestone reached 8 months ago.

In addition, Martinez highlights a recent buy signal from the TD Sequential indicator on the 12-hour chart, suggesting that a rebound could be imminent, potentially allowing Bitcoin to challenge the $73,000 resistance level again.

Analyst Miles Deutscher on the other hand, asserts that Bitcoin is on a trajectory toward $100,000, regardless of the November 5 election outcome. However, he anticipates that a Trump victory could further elevate Bitcoin’s price ceiling, with speculative targets ranging from $200,000 to $300,000. 

Deutscher further believes that this bullish sentiment extends to altcoins like Ethereum, which may also benefit from a BTC rally in the last part of the year.

The analysis comes as Trump has expressed strong support for the crypto industry, even suggesting the potential use of Bitcoin as a strategic national reserve asset to address the country’s substantial national debt, currently estimated at $35 trillion. 

Many believe that a Trump administration could bode well for bitcoin’s future growth, with increased adoption and exposure from pension funds and institutions looking to diversify their portfolios, as seen in the current resurgence of Bitcoin ETFs.

In contrast, Kamala Harris’s position on cryptocurrency has been less clear. While she has not articulated a robust plan for the digital asset sector, experts predict a shift from the current Biden administration’s regulatory scrutiny led by the US Securities and Exchange Commission (SEC). 

At the moment, the difference on crypto betting site Polymarket gives Trump a nearly 60% chance of beating Harris in the coming hours. On the other hand, traditional polls show an even race between the two candidates, but with Trump winning every single swing state for the election.  

Featured image from DALL-E, chart from TradingView.com