Bitcoin, Ethereum, Solana Technical Analysis During US Election Tensions

The 2024 US presidential election may significantly impact the cryptocurrency market. Donald Trump and Kamala Harris offer different approaches. Trump promises to make the US a global crypto leader and establish a national Bitcoin reserve. His recent launch of World Liberty Financial further signals his commitment. If Trump wins, his policies could boost market confidence, leading to a surge in crypto prices. Investors may expect a more favourable regulatory environment under his administration. This optimism could strengthen the US dollar as capital flows into crypto. However, it might also introduce volatility if regulatory expectations clash with financial markets.

On the other hand, Harris and the Biden administration have taken a much more cautious approach. Under Gary Gensler’s leadership, the SEC has led aggressive crackdowns on crypto firms. It has cited fraud and regulatory violations as the reasons for these actions. Harris has remained largely silent on crypto but has hinted at policies that balance regulation with technological growth. The industry was active before the election, spending $119 million in donations last month. Market uncertainties and these crypto campaigns have pushed Bitcoin (BTC) to record levels.

Whoever wins the election, cryptocurrencies may experience strong price volatility. Ethereum (ETH) fluctuates within tight ranges and awaits direction before the election. On the other hand, Solana (SOL) remains strong, and a break above $200 could initiate the next significant move. The chart below shows the percentage change in Bitcoin, Ethereum, and Solana prices for the past four years. Bitcoin increased by 410.6%, Ethereum rose by 549.4%, and Solana experienced volatility, with a rise of 10,710%. These cryptocurrencies peak in 2021, followed by price consolidation. However, Bitcoin is now nearing a breakout from its peak, while Solana and Ethereum remain lower. If Bitcoin breaks record levels, Solana and Ethereum will likely follow Bitcoin’s rally.

Bitcoin (BTC) Technical Analysis

Bitcoin Daily Chart – Correction from Record Levels

The daily chart for Bitcoin shows strong positive momentum accompanied by significant volatility. The positive momentum is evident from the breakout above the black dotted trend line, representing the descending broadening wedge pattern. This breakout indicates a strong bullish trend. However, the black trend line at $73,500 marks a strong resistance level. This resistance level is called the record high for Bitcoin, making it a key level to watch.

A breakout above $73,500 could trigger a significant surge. The black dotted trend line at $67,500 and the red dotted trend line at $65,200 are strong short-term support levels. Additionally, the RSI is approaching the mid-level and providing further support. Moreover, the 50 SMA crossing above the 200 SMA increases the likelihood of an upside breakout.

Bitcoin 4-hour Chart – Ascending Channels

The short-term outlook for Bitcoin also indicates strong positive momentum. The ascending channels reflect this momentum on the 4-hour chart. The price breaks below the blue ascending channel and approaches the midline of the black ascending channel. This price correction from record levels is due to the extreme overbought conditions indicated by the RSI on the 4-hour chart. However, as the price nears support, the chances of a strong rebound increase.

Ethereum (ETH) Technical Analysis

Ethereum Daily Chart – Bearish Pressure

The daily chart for Ethereum shows bearish price development. The price rebound is capped by the resistance line, as indicated by the orange arrows on the daily chart. The price fluctuates below the 200 SMA and breaks below the 50 SMA, which increases the likelihood of bearish momentum. Moreover, the RSI is below 50, which suggests the possibility of further declines in Ethereum. Since Bitcoin is correcting lower from the resistance levels, Ethereum is also dropping below its support line. Once Ethereum completes its correction, Bitcoin may reach its support level, potentially preparing for the next strong rally.

Ethereum 4-hour Chart – Breakout within Bearish Price Development

The 4-hour chart provides a clear view, showing that the price attempts to break below the black trend line. A break below the black dotted trend line at $2,390 would initiate downward momentum. The chart also indicates that the upper black trend line caps each rebound in Ethereum and then reverses lower, demonstrating continued bearish pressure on Ethereum.

Solana (SOL) Technical Analysis

Solana Daily Chart – Bull Flag

The daily chart for Solana shows price consolidation between $182 and $125. However, this consolidation has formed a bull flag on a broader scale, with the flagpole stretching from the October 2023 lows and January 2024 lows. The price remains above the 50 and 200 SMAs, indicating positive momentum. As Bitcoin corrects from record levels, Solana is also retracing from the $182 resistance. A break above $200 would initiate strong upward momentum in Solana. As long as the price remains above $120, the outlook for Solana remains strongly bullish.

Solana 4-hour Chart – Ascending Broadening Wedge

The 4-hour chart for Solana shows the emergence of an ascending broadening wedge pattern. The price is breaking below the black dotted trend line, indicating the possibility of a move toward the $145 level. A break below $145 could also initiate the next move to the $125 support level. The emergence of the broadening wedge pattern highlights increased volatility. However, the overall trend remains upward. A price correction in Solana will likely present buying opportunities for traders.

Conclusion

In conclusion, the 2024 US presidential election is pivotal for the cryptocurrency market. Depending on the outcome, it brings significant potential for price volatility and strategic shifts. A win by Donald Trump could impact market optimism and drive capital inflows, boosting crypto prices. However, this could also spark volatility if regulatory expectations clash with traditional financial markets. On the other hand, a Kamala Harris administration could sustain regulatory pressure and impact investor sentiment, possibly capping gains.

Bitcoin, Ethereum, and Solana are poised for critical movements amid these dynamics. Bitcoin is correcting from record levels and could surge if the price breaks above $73,500. On the other hand, Solana shows bullish price momentum, with $200 as a key level. However, Ethereum remains under bearish pressure, though if Solana and Bitcoin break above their key levels, Ethereum may start to find a bottom at lower levels. Investors should prepare for increased market activity and potential buying opportunities as cryptocurrencies respond to political and economic developments.