As Bitcoin (BTC) navigates a tumultuous period marked by increased volatility and a significant correction in cryptocurrency prices, market analyst Lark Davies has shed light on a potentially promising trend.
In a recent post on social media platform X (formerly Twitter), Davis drew parallels between Bitcoin’s current Price movement and seen during the last presidential election cycle, suggesting a potential restoration of confidence in major cryptocurrencies.
Bitcoin Mirrors 2021 Election Cycle
Davis exposed That Bitcoin seems to mirror its price action from the last presidential election and the inauguration in 2021.
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The expert presented a chart showing three different phases that Bitcoin went through during that time, which again could be relevant as we approach the upcoming inauguration of President-elect Donald Trump on January 20.
The first phase, which Bitcoin had already experienced in November and December 2024, saw a significant rally towards a new high of $108,000 on December 17.
After this initial surge, Bitcoin entered a second phase that Davis characterized as a “pre-opening dump.” Historically, this period has been marked by the market improvement Because investors react to uncertainties surrounding political change.
Currently, Bitcoin appears to be navigating this phase, with observers closely monitoring its price movement as the unveiling date approaches.
Davis expects a potential “post-opening pump,” reminiscent of the price surge that took bitcoin to an all-time high of $69,000 in 2021. With only days left until the opening, the market is eagerly watching whether it Historical patterns Will repeat itself in 2025.
The market expects Trump’s inauguration
Sentiment surrounding the future of Bitcoin is further buoyed by Trump’s promises to reshape the regulatory environment for cryptocurrencies.
Unlike Biden, whose administration has taken a more cautious approach, Trump has signaled a desire to encourage growth within himself. Digital assets space, including plans to set up a Bitcoin stockpile to address the national debt, which is over $36 trillion.
While Lark Davies cautions that history does not repeat itself, he notes that it often “repeats.” The prospect of increased support for Bitcoin from the incoming administration could act as a catalyst, propelling the cryptocurrency to new price highs and entering a phase of price discovery.
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In addition to Davis’ insight, fellow crypto analyst Dr. Labh also weighed in on Bitcoin’s recent performance. He expressed Optimism about the cryptocurrency’s trajectory, indicating that it is in line with his earlier expectations.
The gains emphasize the importance of maintaining a daily close above the $95,900 mark, with a breakout above $97,500 necessary for Bitcoin to continue its upward momentum towards the $100,000 threshold.
At the time of writing, BTC trades at $97,000, recording a gain of 3% in the 24-hour time frame.
Featured image from DALL-E, chart from TradingVew.com
