In an astonishing display of market momentum, Bitcoin (BTC) surged to an all-time high of $75,358 after experiencing a remarkable 7.23% rally in just four hours. This sudden spike has left many analysts and investors speculating about the future trajectory of the cryptocurrency.
A ‘Pro-Crypto’ President Takes Office
The United States presidential election results have had a significant impact on the crypto market. With Donald Trump’s victory, many are hailing it as a positive development for the industry. One such analyst has even reiterated a Bitcoin price target above $100,000 in the coming weeks.
The Cup-and-Handle Pattern: A Bullish Breakout
A few hours after the election results were announced, Titan of Crypto, an independent trader, highlighted a long-term cup-and-handle pattern for Bitcoin. This pattern is currently undergoing a successful bullish breakout and has a high success rate of 95% during bullish market conditions.
The Cup-and-Handle Pattern Analysis
[Image description: Bitcoin Cup and Handle pattern analysis by Titan of Crypto/X]
As mentioned earlier, the cup-and-handle pattern has a high success rate of 95% during bullish market conditions. It can yield an average profit of 54% from the breakout range. In line with this, the trader mentioned that the ‘incoming’ price target for BTC is $110,000, which represents a 47% return on investment (ROI) of the current breakout price range of $75,000.
A Three-Month High in Trading Volume
Meanwhile, Follis, an affiliated Bitcoin trader on the WOOX exchange, shed light on a peculiar market occurrence. In an X post, the trader explained that BTC demonstrated a three-month high in trading volume during the four-chart candle, which exhibited a new all-time high.
The Importance of Trading Volume
[Image description: Bitcoin 4-hour trading volume spike by Follis/X]
As noted by Follis, the significance of this type of market behavior often leads to pivot points, where the price aggressively exits range-bound conditions. This can result in significant price movements, making it an exciting time for investors.
Coinbase Premium Turns Positive
One key metric to estimate the pulse of US retail investors is the Bitcoin Coinbase premium index. Data from CryptoQuant highlighted that the index turned green for the first time in Q4 after a strong selling period in October.
The Importance of the Coinbase Premium Index
[Image description: Bitcoin Coinbase premium index by CryptoQuant]
It is also important to note that the index registered a yearly low value on Oct. 25, when BTC dropped to $66,000. However, the index has recovered rapidly since then, indicating a potential surge in BTC spot demand from US retail investors.
A Collective Buying Spree
Additionally, the spot delta turned positive on other exchanges during the late hours of Nov. 5, with Binance and Bitfinex spot markets exhibiting positive spot volumes. Thus, there was a collective buying spree for Bitcoin before the US election results were out, as investors braced for positive price action.
Spot Volumes on Exchanges
[Image description: Bitcoin spot volumes on exchanges by X]
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
The Future of Bitcoin
As the market continues to speculate about the future trajectory of Bitcoin, one thing is clear – the cryptocurrency has reached new heights and is showing no signs of slowing down. With a ‘pro-crypto’ president in office and a bullish cup-and-handle pattern unfolding, investors are eagerly awaiting what’s next for this digital asset.
Investor Alert: Risk Involved
As with any investment or trading move, there is always risk involved. Readers should conduct their own research and make informed decisions before making a move in the market.
