The US presidential election results show that Donald Trump has been elected, sending the price of bitcoin skyrocketing to $75,407.
Following Trump's victory in the US presidential election on Wednesday, the price of bitcoin soared to $75,407.
According to the technical analysis, Bitcoin may next aim for the $78,000 mark, which is located above the 141.40% Fibonacci extension level.
Rumor has it that the so-called Trump trade is picking up steam, which entails taking long positions in the US dollar, cryptocurrency, and rising Treasury rates.
Following Donald Trump's election as the 47th president of the US, a candidate whose pro-crypto positions were seen as more positive for crypto markets, the price of Bitcoin (BTC) surged more than 7% to a new record high of $75,407.
According to technical indications, Bitcoin's next objective might be the $78,777–$78,955 area. The so-called Trump trade, which is centered upon long positions in the US Dollar (USD), cryptocurrency, and rising Treasury rates, is gaining steam, according to sources.
With Trump's victory, bitcoin reaches a new all-time high.
In the wake of Donald Trump's election as president-elect, Bitcoin surged to a new record high of $75,407, surpassing its previous all-time high of $73,777.
The Associated Press reports that Trump crossed the 270-vote barrier necessary to secure the presidency after his victories in Wisconsin and other crucial swing states.
The 'Trump trade,' which includes dollar and cryptocurrency long positions as well as bets on rising Treasury rates, has been popular in the run-up to the election, according to a research from crypto-asset trading company QCP.
Market participants expect President Trump's economic policies and tariffs to boost the value of the US dollar, which has led to a rise in the USD. Because of its reliance on the US dollar for pricing and trading, this has a negative impact for gold. Joaquin Monfort, an analyst at FXStreet, argues that investors are fleeing gold because they are favoring alternative riskier assets, such as Bitcoin (BTC) and stocks.
Many see Donald Trump as being more crypto-friendly than Kamala Harris. Speaking at a Bitcoin conference was a fantastic outreach effort by Trump for the crypto business. Trump made a number of promises to the industry, including the removal of Gary Gensler from his position as chair of the Securities and Exchange Commission (SEC), announced the formation of a presidential advisory council to discuss Bitcoin and other cryptocurrencies, and suggested a strategic national Bitcoin stockpile to put the US at the forefront of cryptocurrency adoption. He also promised to create clearer regulatory guidelines.
Following withdrawals from Bitcoin ETFs, profit-taking ramps up
According to Coinglass ETF statistics, US spot ETFs had a $657.9 million outflow till Tuesday, which is the second day in a row, suggesting that institutional demand for Bitcoin is declining. However, as the data does not yet reflect the outcomes of the US presidential election, it is inherently retrograde.
In addition, the Network Realized Profit/Loss (NPL) indicator for Santiment increased from 35.75 million to 909.41 million between Tuesday and Wednesday, indicating that some investors did indeed record gains. This increase suggests that, generally speaking, the holders were cashing in.
Bitcoin, the most valuable cryptocurrency by market value, broke out of a downward-sloping parallel channel pattern in mid-October and retested its breakout level at about $67,800, according to the cryptocurrency's weekly chart. Last week, it reached an all-time high of $73,777, but it was rejected after a brief rally. It has been continuing its ascent this week, with a new high of $75,407 having been recorded above its previous ATH.
A new all-time high (ATH) of $78,955 is projected if Bitcoin's advance continues, according to the pattern's technical objective. This target is derived by calculating the distance between the two trendlines and projecting it higher.
Bullish momentum is gathering steam, according to the Relative Strength Index (RSI) momentum indicator on the weekly chart, which is now trading at 63, which is above its neutral threshold of 50 but still far below overbought circumstances.
Bulls are in charge, according to the daily chart, which suggests a rally is on the horizon. Bitcoin surged 2.24 percent till Tuesday after finding support around $67,000 on Monday. On Wednesday, it reaches a new peak of $75,407, surpassing its previous ATH of $73,777.
Bitcoin could be able to reach the 141.40% Fibonacci extension level at $78,777 if it manages to close the day above its previous ATH of $73,777. This level is drawn from July's high of $70,079 to August's low of $49,072. It also aligns closely with the technical target of the downward-sloping parallel channel pattern around $78,955 on the weekly chart.
On the daily chart, the Relative Strength Index (RSI) has risen beyond its neutral level of 50 and is now showing 68.
On the other hand, Bitcoin may retest the important psychological milestone of $70,000 if it falls and fails to close above $73,777.
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