Bitcoin rallied to new all-time highs on Wednesday, driven by a near-certain win Donald Trump in the US Presidential election. The crypto market bellwether traded at $75,395 at the time of writing, having risen by more than 5 percent on the daily chart. Furthermore, the market momentum signaled potential for further upside.
BTC price was under strong downward pressure last week, recording a successive six-day decline as opinion polls showed that the two candidates were neck-and-neck. However, with multiple news outlets projected that Trump had crossed the 270 electoral college vote early on Wednesday, the crypto market erupted, with Bitcoin price leading the upsurge.
Trump is a known supporter of digital assets, and even sold his own Non Fungible Tokens (NFTs) during the campaign period. His win is certainly a symbolic win for the crypto industry, whose growth in the US has been subdued due to regulatory restrictions.
The Securities and Exchange Commission (SEC) has been in a protracted legal battle against XRP issuer, Ripple Labs since December 2020. In addition, some US congressmen have hit out at the regulator for “overstepping its mandate” in the absence of a clear legal framework classifying digital assets as securities.
The approval of Bitcoin ETFs in January 2024 set the stage for a broader integration of digital assets in the mainstream financial markets. That set in motion the market sentiment that drove Bitcoin price to its previous record high price of $73,793 in March.
The Trump win has, in turn, catapulted Bitcoin to its first ATH since the April 20 halving event. The current momentum could potentially drive it to higher highs in the near term. However, previous Bitcoin rallies came with increased price volatility, which could also repeat this time.
The Bitcoin price momentum will likely keep the asset on the ascending trajectory above the pivot point at 73,018. With the buyers in control, initial resistance is likely to come at 74,931. However, if the momentum strengthens, could break above that level to test 76,036.
Conversely, moving below 73,018 will favour the buyers to take control. In that case, the first support could come at 71,982. However, a stronger downward momentum could break below that point and invalidate the upside narrative. Also, the decline could send the price to test the second support at 71,095.
This post was last modified on %s = human-readable time difference 08:12