Bitcoin Hits New High of $75,358 Post-Election

BTC soars following Trump’s re-election, sparking mixed forecasts

Bitcoin has soared to a new all-time high of $75,358, igniting excitement across the cryptocurrency market following the announcement of former U.S. President Donald Trump’s re-election. The rally propelled Bitcoin up by 10% before a brief correction, settling at $74,037 as of this writing—a slight dip from its peak.

With Bitcoin’s historic rise, analysts are dissecting technical indicators for insight on whether this momentum can hold. Notably, CryptoBullet, a well-known market analyst on X (formerly Twitter), highlights Bitcoin’s dominance index in relation to the TD Sequential indicator, which many traders use to forecast potential trend reversals. According to CryptoBullet, Bitcoin is exhibiting its second TD-9 Sell signal on the two-week chart. This signal, observed in past cycles like 2018 and 2021, has frequently preceded market corrections, hinting that Bitcoin’s dominance may be reaching a peak.

Adding to this, another analyst, Ali, observed that the four-hour chart of Bitcoin has also produced a TD Sequential sell signal, suggesting a potential pullback to $72,000. However, Ali notes that this outlook may change if Bitcoin holds above $75,400, which could drive further gains toward $78,000.

The MVRV (Market Value to Realized Value) ratio has also drawn attention. CryptoQuant analyst MAC.D explains that MVRV is a key metric used to determine if Bitcoin is trading above or below its fair value. Current MVRV readings suggest Bitcoin has not yet reached the “overheating stage” typically associated with major price corrections. According to MAC.D, a “mature” Bitcoin market is likely to exhibit more gradual price movements. If the MVRV approaches a value of 3, it might indicate that the market is nearing an overvaluation point.

The recent price movement has spurred a surge in trading volumes across major exchanges, indicating robust engagement from traders and institutional investors alike. Futures market data shows neutral funding rates, suggesting that the rally is driven by spot market activity rather than excessive leverage. This indicates a healthier, more sustainable market, with both spot and derivatives traders actively participating.

Accompanying this price spike, social media activity and public search trends for Bitcoin have surged. This often aligns with increased market engagement as new investors enter the space, contributing to “price discovery,” where a new equilibrium is reached as market participants agree on Bitcoin’s fair value.

Market sentiment indicators such as the Crypto Fear and Greed Index also reflect this renewed interest, with sentiment remaining in the “greed” zone at a score of 70. This score suggests that enthusiasm is high but not yet overblown, giving Bitcoin potential room for additional gains. Technical structures show strong support at $72,000, while lighter resistance exists above the current price level, hinting at the possibility of further upward momentum.

Analysts continue to watch the regulatory landscape and institutional involvement, both of which are contributing to Bitcoin’s current rally. As Bitcoin’s institutional adoption grows and regulators in various jurisdictions clarify their stance on digital assets, these factors provide a solid foundation for Bitcoin’s ongoing ascent.

photo source / Blockonome