Recently, cryptocurrency analyst Jason Pizzino shared his insights on the potential impact of the forthcoming U.S. elections on financial markets, including Bitcoin. He noted that the political contest is proving more competitive than anticipated, making a clear victory for Donald Trump unlikely. This lack of certainty could prompt increased market volatility in the wake of the elections.
As election day draws near, investor anxiety is heightening, particularly as many predict Kamala Harris may triumph over Trump. Pizzino outlined various scenarios and the potential market responses to different election results.
In the event of a Harris victory, Pizzino envisages an initial market downturn. However, he suggests this slump may be short-lived as investors anticipate a potential influx of stimulus funds, which could trigger a rebound. Conversely, if Trump secures a win, a significant market surge is probable, succeeded by sustained growth.
READ MORE:
Binance Faces Accusations of Requiring Token Fees for Listings, Co-Founder Refutes Claims
Pizzino also remarked that his current analysis does not indicate any major market cycle shifts. He drew attention to a phase within an 18-year cycle he has dubbed the “Winner’s Curse”, suggesting this period typically generates increased volatility and trading opportunities as the market adjusts to political changes.
In terms of Bitcoin, it is currently striving to recover from a recent decline that saw its value drop to roughly $67,500 after a fall from $72,500. Currently trading below $70,500 and the 100-hourly simple moving average, Bitcoin is demonstrating signs of potential recovery.
A recent breakthrough above the bearish trend line at $68,300 could signal bullish activity, with the cryptocurrency targeting resistance around $70,000. Successful maintenance of this level could result in gains towards $71,200 and potentially $72,500. However, if Bitcoin fails to exceed the $70,000 threshold, it may encounter another downturn, with immediate support at $68,000 and crucial levels around $67,500 and $67,200.
