- Bitcoin price action tanks over 4% intraday, breaking below $20,000 as the US casts its votes in the congressional midterm elections.
- BTC price faces headwinds from uncertainty on the outcome as it might take until December before all seats get allocated.
- The most likely scenario points to either a Republican win in the Senate or the House, which makes Biden a lame duck.
Bitcoin (BTC) price action slips over 4% intraday and 7% with the weekend sell-off included. The uncertainty on the outcome of the US midterms weighs on investor sentiment and faces even more pressure in the aftermath of Musk tweeting to vote Republican as Tesla shares tank. It points to a very nervous event with a binary outcome in the coming days and weeks as results and runoffs are set to occur.
BTC price action would favour a Republican landslide win
Bitcoin price action’s break below the $20,000 handle is telling of the nervousness from investors toward the outcome of the US midterm results. Markets favour either a split between the House and the Senate or an overall victory for the Republicans. BTC price action would thus rally on the back of the fact that Biden would become a lame duck president who could not push through any significant reforms, which often come with a hefty price tag. One of the above scenarios would see BTC price action rally once the count gets confirmed, certainly if some swing states fall into the hands of the Republican Senate. Expect a very tiered response as the results slowly clarify the outcome.
Expect first to see a pullback above $20,000 at first, should a slim Republican majority be seen in the first 48 hours. Next up will be a jump toward $21,200 should one or two swing state Senate seats go to Republicans – Pennsylvania or Georgia for instance. In the ideal scenario, $21,969 would come into play with a break above the monthly R1 resistance level in case it becomes clear that Republicans win both the House and the Senate.
BTC/USD daily chart
The risk to the downside, which needs to be taken into account, is that Trump is set to announce that he will run for the presidency again in 2024. That could push away many voters from Republicans toward the Democrats. BTC price action would test $19,036 to the downside and could break below there to test the waters at $18,000 by December.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Solana, Base and AI meme coins rally, are speculative tokens making a comeback?
Meme coins are typically considered more speculative than the rest of cryptocurrency categories. Despite the label, hedge funds and institutional investors have warmed up to meme coins this cycle.
RWA narrative could make a comeback after nearly 50% correction in CFG, ONDO, MKR
Bitcoin halving and developments in the AI sector are the key narratives this cycle. The Real World Asset (RWA) tokenization narrative gathered steam with BlackRock’s tokenized asset fund launch on Ethereum in March 2024.
These cryptocurrencies could face selling pressure according to an analyst: STRK, ENA, OMNI, JUP, ONDO
Thor Hartvigsen, investor at Heartcore Capital and a crypto analyst has identified a list of cryptocurrencies that are expected to see a massive increase in their supply. Typically, an increase in selling pressure negatively impacts an asset’s price.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.