As Bitcoin (BTC) navigates a turbulent period marked by increased volatility and a major correction in cryptocurrency prices, market analyst Lark Davis has shed light on a potentially promising trend.
In a recent post on social media platform X (formerly Twitter), Davis drew parallels between current Bitcoin price movements and those seen in the last presidential election cycle, suggesting a renewed confidence in the major digital currency.
Bitcoin Mirror 2021 Election Cycle
Davis marked that Bitcoin appears to mirror its price action from the previous presidential election and inauguration in 2021.
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The chartist presented three distinct levels that Bitcoin took over that period, which could be relevant again as the market approaches the next Presidential inauguration- Donald Trump will be elected on January 20.
The first phase, which Bitcoin already experienced in November and December 2024, saw a special rally towards new highs that ended with a peak price of $108,000 on December 17.
After this initial surge, Bitcoin entered a second phase characterized by what Davis refers to as a “predestined dump.” Historically, this period is characterized by a market corrections how investors deal with uncertainty about political trends.
Currently, Bitcoin appears to be sailing through this phase, with observers closely monitoring its price movements as the launch date approaches.
Davis anticipates a possible “post-sorting pump,” reminiscent of the price surge that led Bitcoin to a high of $69,000 in 2021. historical pattern repeat itself in 2025.
The Market Anticipates Trump's Inauguration
The sentiment about the future of Bitcoin is further strengthened by Trump's promises to reshape the regulatory environment for cryptocurrencies.
Unlike Biden, whose administration has taken a more cautious approach, Trump has expressed a desire to encourage growth within the digital assets place, including plans to establish a Bitcoin stockpile aimed at addressing the national debt, which exceeds $36 trillion.
While Lark Davis warns that history may not repeat itself, he notes that it often “rhymes”. The prospect of more support for Bitcoin from the incoming administration could act as a catalyst, moving the cryptocurrency to new price highs and entering a phase of discovery prices.
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In addition to Davis' insight, fellow crypto analyst Doctor Profit has also weighed in on Bitcoin's recent performance. He has express optimism in the direction of cryptocurrency, showing that it aligns with his previous expectations.
Profitability emphasizes 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 move towards the threshold of $100,000.
At the time of writing, BTC is trading at $97,000, registering gains of 3% in the 24-hour time frame.
Featured image from DALL-E, chart from TradingVew.com
