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As bitcoin (btc) goes through a turbulent period marked by increased volatility and a significant correction in cryptocurrency prices, market analyst Lark Davis has shed light on a potentially promising trend.
In a recent post on social media platform price movements and those observed during the last presidential election cycle, suggesting a possible restoration of confidence in the leading cryptocurrency.
bitcoin reflects the 2021 election cycle
Davis <a target="_blank" href="https://x.com/TheCryptoLark/status/1879193022325272765″ target=”_blank” rel=”nofollow”>highlighted that bitcoin appears to be mirroring the price action of the previous presidential election and the inauguration in 2021.
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The expert presented a chart illustrating three distinct phases that bitcoin went through during that time, which may become relevant again as the market approaches President-elect Donald Trump's upcoming inauguration on January 20.
The first phase, which bitcoin already experienced in November and December 2024, saw a notable rally towards new highs culminating in a price peak of $108,000 on December 17.
After this initial surge, bitcoin entered the second phase characterized by what Davis calls a “pre-inauguration dump.” Historically, this period has been marked by the market. corrections as investors react to uncertainties surrounding political transitions.
Currently, bitcoin appears to be going through this phase, with observers closely monitoring its price movements as the inauguration date approaches.
Davis anticipates a possible “post-inauguration pump,” reminiscent of the price surge that propelled bitcoin to an all-time high of $69,000 in 2021. With just days left until the inauguration, the market is watching closely to see if this historical pattern will be repeated in 2025.
The market anticipates Trump's inauguration
Sentiment around the future of bitcoin is further bolstered by Trump's promises to reshape the regulatory environment for cryptocurrencies.
Unlike Biden, whose administration has taken a more cautious approach, Trump has expressed his desire to foster growth at home. digital asset space, including plans to establish a bitcoin reserve aimed at addressing the national debt, which exceeds $36 trillion.
While Lark Davis cautions that history may not repeat itself, he notes that it often “rhymes.” The prospect of greater support for bitcoin from the incoming administration could serve as a catalyst, propelling the cryptocurrency toward new price highs and entering a price discovery phase.
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In addition to Davis' insights, crypto analyst Doctor Profit has also weighed in on bitcoin's recent performance. He has <a target="_blank" href="https://x.com/DrProfitCrypto/status/1879277510640476173″ target=”_blank” rel=”nofollow”>voiced optimism about the cryptocurrency's trajectory, indicating that it is aligning with its previous expectations.
Profit emphasizes the importance of maintaining a daily close above the $95,900 mark, with a break above $97,500 necessary for bitcoin to continue its upward momentum towards the coveted $100,000 threshold.
At the time of writing, btc is trading at $97,000, recording 3% gains in the 24-hour period.
Featured image of DALL-E, chart from TradingVew.com
