Bitcoin could be nearing a test of its all-time high, but uncertainty remains regarding how quickly traders will take profits, according to a crypto analyst.
“Should history repeat itself, Bitcoin is likely to retest its all-time high above $73,750 from the third week of October into November,” said Ryan Lee, chief research analyst at Bitget, in an interview with Cointelegraph.
Lee explained that there are signs indicating a Bitcoin “breakout imminent in the coming month,” but he warned that price action may become volatile.
“This bullish breakout will likely be accompanied by occasional cool-offs that will translate as selloffs,” Lee noted, emphasizing that investor sentiment leading up to the United States election in November will significantly influence these movements.
“The intensity of these selloffs might vary, depending on investors’ disposition to the coming election.” He pointed out that optimism among traders has risen since the US Federal Reserve cut rates by 50 basis points and the People’s Bank of China followed suit with a 30 basis point cut, making riskier assets more appealing.
Lee argued that if confidence builds around the possibility of a “pro-Bitcoin” president, traders may hesitate to sell, fearing they could miss out on larger profit opportunities.
“They may want to lay out their bets early to capture future gains. This sentiment will likely help Bitcoin record a bullish uptick rather than selloffs,” he added.
On Sept. 18, Nansen CEO Alex Svanevik stated that a Donald Trump victory would be “bullish for crypto in the US.” However, he believes a Kamala Harris win would be “bullish for crypto outside the US,” as crypto firms might relocate.
During his election campaign, Trump has consistently supported the crypto industry. Speaking at the Economic Club of New York on Sept. 5, he reiterated his commitment to making the US a global crypto hub.
“Instead of attacking industries of the future, we will embrace them, including making America the world capital of crypto and Bitcoin,” Trump stated.
At the time of publication, Bitcoin was trading at $63,820, up 2.75% since Sept. 19, according to TradingView data.
