An expert in Bitcoin fundamental analysis claims that although the cryptocurrency is bullish currently, things could get “rocky” until after the US Presidential Election concludes.
But as soon as the winner is chosen, the “clarity” combined with the asset’s halving has in the past provides “solid” foundation for each new bull run to begin.
Bitcoin Halving In The Past, Fundamentals Build On Bullish Base
Bitcoin’s halving is now months behind us, and its time for the stock-to-flow model to prove itself, or fall victim to lengthening cycle theories.
Thus far, although there’s only been a small sample size to go by, each halving has resulted in a new uptrend. Each Bitcoin halving takes place roughly every four years, reducing the block reward miners receive in BTC, therefore lowering the supply entering the market.
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Various tools developed by Bitcoin fundemental expert Charles Edwards indicate that the cryptocurrency is gearing up for another incredible uptrend. His tools, such as the hash ribbons, have provided investors with some of the most profitable buy signals in the asset’s history.
Edwards has turned several crucial network health metrics into technical analysis indicators. In Edwards’ latest chart, although he’s spared the use of those tools, he’s pointing out that although the crypto asset is indeed bullish, the road ahead for the next few months could be “rocky.”
BTCUSD Daily Presidential Election Final Stretch "Rocky" Price Action | Souce: TradingView
Crypto Bull Run “Clarity” To Arrive Post Presidential Election
According to Edwards, it is the upcoming United States Presidential election that’s to blame for Bitcoin’s rocky stretch ahead.
Past crypto market cycles show that the leading asset by market grows its bullish momentum leading up to the election, then breaks out into “solid” performance afterward.
Related Reading | Bitcoin Bouncing From Bull Market Support Points To 2021 As The Year Of Crypto
After the election-related uncertainty and risk is removed from markets, the cryptocurrency rises to a new all-time high. Because Bitcoin has only a short, just over a decade long price history, the sample size for this to occur is small.
But so is the halving. Both the halving, and a Presidential election arrives every four years, and we’ll soon find “clarity” on if history will repeat again, or if because of how pivotal and polarizing this election is, if this time truly is different for Bitcoin.
Featured image from DepositPhotos, Charts from TradingView
This post was originally published on www.newsbtc.com