I think we can all agree it's good to see Bitcoin rallying again and hitting a new all time high. The same consensus probably isn't shared of the US presidential election result, but we'll leave that well alone because this is not a political post!
For this post I want to focus on Bitcoin itself. I recently published a post doing my best to analyse the correlation between US general election cycles and Bitcoin performance. The general conclusion from that piece of analysis was that while there may not be an overwhelming link between the two in my humble opinion once we know who is in the White House Bitcoin tends to climb.
It's clear from this US election that the same pattern has emerged, just not on the same level. On the night of the election and into the early hours of the 6th November Bitcoin hit a new ATH of $75,317, smashing its previous ATH of $73,750. It has since gained further traction and yesterday hit another new ATH of $77,023.
Now let's not forget the halving which occurred earlier in the year, this of course is the most important factor in the four year cycle. However, if the influence of the US election continues and the previous pattern of where we were this time four years ago continues then we should expect Bitcoin to continue its vertical movement.
I don't like to make forecasts so I am not going to. I am not going to say the Bitcoin price patterns we have seen in both 2016 and 2020 will definitely repeat this time around, I'm just saying that Bitcoin has so far indeed mirrored 2016 and 2020 just on a smaller scale.
Whether from this point onwards Bitcoin continues its vertical trajectory into a sustained pattern is impossible to say for sure. Given its performance in the past few days many of the indicators are looking good. But right now Bitcoin is pulling back again, let's just hope it's nothing more than a retracement and we see it on the climb once again. Keep those fingers crossed!
Peace!