Bitcoin reached fresh record highs in trading yesterday after Donald Trump secured a decisive victory, bringing him and the Republican Party to the White House and Congress. Trump has been a strong supporter of cryptocurrencies in the past and has openly expressed his intention to actively support the industry’s development once he assumes office in the coming months. The fact that there are reportedly over 50 million cryptocurrency holders in the U.S. may have influenced recent voting, and these supporters likely welcomed the market’s reaction.
Traders now anticipate further gains in Bitcoin over the coming days and weeks as the market adapts to a new U.S. government environment. Bitcoin peaked around 76,500 yesterday but has since retreated to 75,000 in today’s trading on some profit-taking. Generally, however, traders are looking for opportunities to buy in the current environment. Initial support is expected at the previous resistance level and prior all-time high of 73,800, with further support around 63,000, where the 200-Day Moving Average is positioned. Since Bitcoin has broken to new highs, experienced traders are likely to consider Fibonacci projections for the next move, with the first resistance level at 87,600 based on the Q4 2022 low to the recent high. Given the recent volatility, along with the potential unpredictability of the new President, traders are also prepared for some sharp price swings as we move forward.
Key Levels:
- Resistance 2: 87,619 – 23.6% Fibonacci Projection
- Resistance 1: 76,499 – Record High
- Support 1: 73,800 – Previous Record High
- Support 2: 63,556 – 200-Day Moving Average
