Midterm Elections Loom Over Bitcoin as Price Enters Final Quarter
The Bitcoin price is showing signs of cooling after its recent recovery to near $87,400. This decline comes as traders assess whether the weakness is a short-term correction or the start of a deeper pullback.
Historically, Bitcoin has recorded negative Q4 returns in previous US midterm years, including 2014, 2018, and 2022. The token fell by 16.70% in Q4 2014, dropped 42.16% in Q4 2018, and declined 14.75% in Q4 2022.
However, the chart shared by analyst Ali shows that Bitcoin has historically strengthened after midterm elections. The star token enters stronger upward phases after previous election-related periods, with gains becoming more pronounced as the broader crypto cycle develops.
The current market setup is mixed, with BTC remaining above its $73,000 short-term holder cost basis. If the price extends its pullback, the $73,000 area could become an important test for the current market structure.