What’s in store for Bitcoin and the stock market tomorrow?
In a recent post on X, cryptocurrency analyst Jason Pizzino analyzed the potential impact of the upcoming US election on financial markets, including Bitcoin and the stock market. A clear victory for Donald Trump seems unlikely, indicating that the race is tighter than expected. This uncertainty could lead to significant market volatility in the days following the election.
Elections are tomorrow and time is running out. As many expect Harris to beat Trump, the odds for the pro-Creto nominee will start with panic in the markets. The analyst provided key factors and market reactions to the results.
Here's his insight!
Market reaction to Harris and Trump
Pizzino predicts different initial market reactions based on the election results. If Kamala Harris is confirmed for the presidency, expect the markets to react negatively at first. However, this downturn is likely to be short-lived as investors realize that stimulus money has been withdrawn, leading to an eventual market recovery. On the other hand, if Trump wins, expect a quick rally in the markets, followed by a move higher.
Insights into the current market cycle
Pizzino notes that his analysis does not indicate any significant changes in the current market cycle. He refers to the “winner's curse” phase of the 18-year cycle that he has been discussing for months. This level increases flexibility and opportunities for traders as market dynamics change following a critical political outcome.
Moreover, Bitcoin is currently recovering from a recent decline from $72,500 to $67,500. The price is trying to regain momentum by trading below $70,500 and the 100-hourly simple moving average.
A recent break above the bearish trend line at $68,300 indicates bullish activity, with Bitcoin now seeing resistance around $70,000. If it can stabilize above this level, further gains could move it to $71,200 and possibly $72,500. But failure to break above $70,000 could lead to another decline, with immediate support at $68,000 and key levels at $67,500 and $67,200.
The entire crypto market is waiting for the US election, will it take BTC to new heights? We will know tomorrow.
