Midterm Elections Loom Large Over Bitcoin Price Action
Analyst Ali Charts has flagged $73,000 as a potential Bitcoin support level following the US midterm elections on November 3. He reviewed historical market patterns around previous midterms and noted that sharp declines occurred in 2010, 2014, 2018, and 2022. However, he cautioned that elections alone did not cause these selloffs.
The comparison also shows the importance of context. Bitcoin's price action varied significantly across each cycle, with some being linked to crypto and macro shocks. Binance Research found that Bitcoin experienced substantial drawdowns during midterm years but recorded an average 54% gain in the 12 months following those elections.
Ali Charts places particular attention on the $73,000 area as a potential short-term holder cost-basis zone. If selling accelerates after the election, this level could become crucial for traders assessing whether a correction remains contained or develops into a deeper decline. The fourth-quarter seasonality also adds another layer of complexity, with Bitcoin posting a 391% gain in Q4 2010 but recording losses in Q4 2014, 2018, and 2022.
VanEck's Matthew Sigel offers a contrarian view, suggesting that Bitcoin could reach $100,000 by next year. He pointed to fiscal pressures, liquidity conditions, and continued institutional demand as drivers of this potential price movement. However, Ali Charts' analysis remains focused on the potential risks and uncertainties surrounding the midterm elections.