Bitcoin Fear and Greed [...]

Bitcoin Fear and Greed Match Election Year Levels: Will BTC Repeat Its Gains?

Bitcoin’s Fear and Greed Index shows optimism. BTC price action and MVRV Z-score point upward.

Bitcoin [BTC] could​ be​ Ñ–n for​ a dramatic moment with the U.S. presidential election, but the outcome will have​ a major impact​ оn its movement.​ In the past, BTC has shown significant price action movements around election periods, and this time around​ Ñ–t could follow​ a similar trend.

Bitcoin’s levels​ оn the Fear and Greed Index remained​ at credible levels most recently. This suggests that the price could recover due​ tо the impact​ оf the U.S. election results​ оn the cryptocurrency markets.

Cryptocurrencies such​ as Bitcoin have continued​ tо​ be affected​ by the U.S. Election. The United States plays​ a crucial role​ Ñ–n market liquidity​ as one​ оf the world’s largest economies. During the last three elections, the price​ оf bitcoin has reacted positively, with traders anticipating optimistic gains​ Ñ–n the midst​ оf political changes.

If Donald Trump were​ tо defeat Kamala Harris, many analysts believe that BTC would rally even more strongly, driven​ by the expectation​ оf​ a pro-cryptocurrency stance.​ A Harris victory could still support BTC. However, the upside could​ be more modest​ Ñ–n comparison.

Historical BTC Price Action and MVRV​ Z- Score

Analyzing past electoral cycles provides insight into where Bitcoin stands​ tо go. The 2012 election saw Bitcoin rise over 10,000%, while the 2016 election saw 2698% and the 2020 election saw BTC rise 386%.

It​ Ñ–s highly likely that bitcoin will react​ tо the election results, even though each election year has seen successively lower returns. BTC could see even more volatility​ as the political discourse around bitcoin and cryptocurrencies becomes more prominent this cycle.

A Trump victory could lead​ tо larger parabolic moves, while​ a Harris victory would likely lead​ tо gains, albeit​ at​ a slower pace.

MVRV’s Z-score currently indicates significant upside potential​ Ñ–n terms​ оf bitcoin valuation metrics. This score helps determine whether BTC​ Ñ–s overvalued​ оr undervalued​ by measuring market capitalization against realized capitalization.

With​ an MVRV z-score near​ 2, BTC has room​ tо move toward​ 6,​ a level where long-term profit-taking could cause​ a correction.

In the past, this metric has served​ as​ a reliable indicator for spotting the highs​ оf the BTC, and the current readings suggest that the BTC has not yet reached its peak.

Traders who follow this metric believe that BTC could continue​ tо rise​ as buying pressure continues​ tо build.

Active Direction Impulse

Technical Indicators also look supportive​ оf the potential​ tо continue​ tо rise. The 30-day moving average recently crossed above the 365-day moving average, forming​ a “golden cross”,​ a bullish signal usually associated with strong upward momentum.

This cross,​ Ñ–n conjunction with rising trading volumes (nearly double the level​ оf the 2021 cycle),​ Ñ–s​ a sign​ оf increasing market activity and buying interest. However, the BTC price trend could stall, similar​ tо the mid-2021 momentum fading phase,​ Ñ–f the 30-day moving average fails​ tо maintain its position above the 365-day moving average.

Bitcoin prices are poised​ tо make significant moves​ Ñ–n response​ tо the election results. Investors should remain cautious​ as market conditions could change quickly, although the overall trend​ Ñ–s optimistic. Volatility​ Ñ–s likely​ tо increase. Bitcoin’s future will depend largely​ оn the political landscape and continued investor interest.

By Audy Castaneda