Bitcoin is on the verge of price discovery again as bets that Donald Trump will win the US presidential election sparked an 8% rise in the price of BTC.
BTC/USD 1-month chart. Source: TradingView
Focus on Bitcoin Bull Market Support Levels
Data from Cointelegraph Markets Pro and TradingView confirmed a new Bitcoin (BTC) record of $75,397 on Binance.
Popular market commentators are now focusing on the key support level that the bulls need to protect.
For Checkmate, anonymous analyst and founder of statistical resource Checkonchain, the main bull market trend lines are still in play.
After clawing back all of Bitcoin’s gains in recent weeks, Bitcoin bulls are likely to face the challenge of preserving them if sell-side pressure returns to the market.
BTC/USD chart with trendline. Source: Checkmate/X
Levels to watch include “traditional” bull market support components such as the 200-day simple moving average (SMA) and short-term holding cost basis (STH-CB).
At the time of writing on November 6, the 200-day SMA and STH-CB are $63,546 and $64,337, respectively.
Bitcoin STH-CB chart. Source: Checkonchain
Closer to home, order book liquidity data from monitoring resource CoinGlass shows price testing in uncharted territory, with heavy requests clustered around $75,500.
The downside is that buyer interest was noticed at $73,000 and the bid went down to $70,000.
BTC liquidation heatmap (screenshot). Source: Coinglass
Citing the sharp rise in BTC prices, Keith Alan, co-founder of trading resource Material Indicators, sounded skeptical.
“Degen is deteriorating,” he said, examining order book data.
Cointelegraph previously reported on expectations that the election-fueled price frenzy will soon fade following the liquidation of hundreds of millions of dollars in cryptocurrencies.
BTC price after election “dump and pump?”
Other cautious market forecasts included the expectation that new volatility would return to mid-$60,000 levels after the election.
relevant: Bitcoin hits a new record of $75,000 as Trump gains early election lead.
This comes courtesy of X’s analytics account Lucky Chart Ape, which uploaded a prediction for a “dump and pump scenario” after counting the votes.
After that, BTC/USD should recover to $70,000.
BTC/USD perpetual swap chart. Source: Lucky Chart Ape/X
“The fact that the volatility we have seen this week is expanding in both directions is a sign that the election narrative is being expunged today,” Material Indicators said in one of its recent posts.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.