Bitcoin enters a new phase of price discovery, after surging 8% amid excitement over Donald Trump’s lead in the U.S. presidential election.
Analysts are now closely monitoring key support levels that could dictate where Bitcoin heads next.
New ATH
Bitcoin reached a new record of $75,397 on Binance, and this impressive jump keep traders buzzing, and many are keeping an eye on critical support levels that need to hold if the bulls want to maintain their momentum.
Checkmate, a well-known analyst and the founder of Checkonchain, pointed out that Bitcoin successfully reclaimed important trend lines in the past weeks, but he also warned that if selling pressure returns, it could pose a challenge for the bulls.
Key levels to watch
The two key support levels to keep an eye on are the 200-day simple moving average at $63,546 and the short-term holder cost basis at $64,337.
On the other hand, order book data from CoinGlass shows that there’s a huge cluster of sell orders around $75,500 as Bitcoin tests these new heights.
Buyers are showing interest at $73,000, with bids extending down to $70,000.
Optimism good, being reckless bad
Despite the excitement, not everyone is convinced about this rally. Keith Alan from Material
Indicators expressed some skepticism, commenting on the order book data by saying, degens are degening, suggesting that some traders might be simply getting ahead of themselves.
Earlier reports showed that the election-related price excitement could soon fade after hundreds of millions in crypto liquidations.
Some analysts are even predicting a potential dump and pump scenario following the election.
Another analyst, Lucky Chart Ape warned on X that Bitcoin could dip back into the mid-$60,000 range due to fresh post-election volatility.
They forecasted that after any potential drop, BTC/USD might recover toward $70,000.
Material Indicators noted that the current volatility is swinging in both directions, suggesting that election-related narratives are becoming less impactful as time goes on.
IT’S ELECTION DAY! FORGET THE NARRATIVES, TRADE THE CHARTS…OR DON’T https://t.co/GVg73BTgpW
Election Day is here and Bitcoin is predictably giving us some unpredictable volatility. While some may view this as a day to vote, grab some popcorn and watch the show in the $BTC…
— Material Indicators (@MI_Algos) November 5, 2024
