Welcome to Extreme Investor Network, where we provide unique insights and expert analysis on the latest trends in the investing world. Today, we are diving into the impact of the “Trump trades” on the cryptocurrency market, specifically focusing on bitcoin.
Following Trump’s victory, bitcoin experienced a significant 23% gain, showcasing a strong reaction to the election results. As investors closely monitor the postelection rally, it’s important to leverage charts to analyze cryptocurrencies like bitcoin. The deep global liquidity and pure supply/demand dynamics make charts a valuable tool for understanding price movements.
From a technical perspective, the postelection rally in bitcoin has led to a breakout to new all-time highs, confirming a bullish intermediate-term development. The weekly MACD is positive, indicating a ‘buy’ signal and suggesting that overbought conditions can be absorbed over time. Additionally, the monthly chart reveals a bullish cup-and-handle formation, signaling potential for another wave higher in the cyclical bull trend.
As we look ahead, there is speculation about the upside potential for bitcoin, with a measured move price projection pointing towards approximately $98.1K. Former resistance levels now serve as initial support, reinforcing the bullish momentum in the market. Investors should view this breakout as an extension of the uptrend, while prospective investors may see it as an opportunity to revisit the chart.
At Extreme Investor Network, we recommend allowing bitcoin to consolidate its recent gains in a short-term phase before considering adding exposure. By staying informed and strategic in your investing approach, you can navigate the dynamic cryptocurrency market with confidence.
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