Is Bitcoin's Post-Midterm Selloff a Buying Opportunity?

Bitcoin may face another post-election selloff after the U.S. midterm elections on November 3, as historical patterns point to further downside.

In an October 24 podcast, market commentator More Crypto Online noted that Bitcoin hit cycle lows within 10 weeks after the midterm elections in 2014, 2018, and 2022, with declines of nearly 50% following the first two elections.

On the other hand, Bitcoin rose 22%, 44%, and 92% respectively in the following year.

Unlike previous midterm elections when Bitcoin traded about 70% below its peak, the current drawdown is around 35%.

This led the analyst to rule out another 50% crash.

Will Bitcoin Fall to $63,300?

More Crypto Online warned that an ABC correction could push Bitcoin into the $63,300 to $74,800 range, with $74,800 potentially representing a buying opportunity.

The 50-week moving average near $76,000 to $76,500 may provide additional support.

Bitcoin faces resistance in the $82,400 to $84,100 and $84,400 to $86,500 ranges.

A breakout above these two zones would weaken the bearish outlook, while a break below the October 15 low could signal further declines.

Nearly $6.2 billion in Bitcoin ETF inflows since early July may limit downside pressure.

Election-Driven Selloff Creates Buying Opportunity

In an October 22 interview on Schwab Network, Jim Ferraioli said historical data shows little correlation between election results and cryptocurrency prices.

While rising odds of Democratic control of Congress have occasionally coincided with crypto weakness, he said the relationship lacks statistical significance.

Ferraioli views election-driven selloffs as potential buying opportunities, citing institutional adoption, bipartisan regulatory support, and continued guidance from relevant agencies despite the failure of the CLEAR Act.