Bitcoin wiped out its recent gains on Monday ahead of the United States Midterm Election which are taking place on Tuesday and the crucial release of US Consumer Price Index data on Thursday at 13.30 GMT. The largest cryptocurrency by market capitalization is exchanging hands at $19,725 at the time of writing, down 5% overnight.

Bitcoin price has broken below the key $20,000 level as BTC holders remain uncertain of the United States Midterm Election outcome. The Democrats and Republicans are battling on the polls for control over the two big chambers of the US Congress, the Senate and the House of Representatives.

Bitcoin price could witness a profound impact as the outcome of the US Midterm Election could influence the industry globally for years. Regulators from the European Union and the International Monetary Fund and the US financial regulator, the Securities and Exchange Commission, have been calling for tougher rules on crypto trading.

Expect first to see a pullback above $20,000 at first, should a slim Republican majority be seen in the first 48 hours. Next up will be a jump toward $21,200 should one or two swing state Senate seats go to Republicans – Pennsylvania or Georgia for instance. In the ideal scenario, $21,969 would come into play with a break above the monthly R1 resistance level in case it becomes clear that Republicans win both the House and the Senate.

The risk to the downside, which needs to be taken into account, is that Trump is set to announce that he will run for the presidency again in 2024. That could push away many voters from Republicans toward the Democrats. BTC price action would test $19,036 to the downside and could break below there to test the waters at $18,000 by December.

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