Don't get too excited about Trump's election! Analyst: BTC may have exhausted its bullish potential, should we sell off at this level?

Trump's election caused BTC to skyrocket, reaching a peak of 76,000

The results of the 2024 US presidential election will be announced. Barring any unforeseen circumstances, Trump will become the new president of the United States, driving BTC to a peak of $76,000. However, some analysts warned of the risk of BTC having exhausted all its bullish potential and experiencing a 'sell the news' phenomenon.

According to the report of 'Cointelegraph', during the vote counting period of the US election on November 6, BTC quickly rose and broke through $75,000, then experienced a period of volatility, and rose to a high of $76,400 early this morning (November 7).

Block chain data analysis platform Checkonchain founder Checkmate said that the current BTC's multiple bull market trend lines are still valid. In the past few weeks, BTC has regained all key support levels.

However, he also reminds investors to be cautious that if there is selling pressure in the market, long positions must strive to hold these support levels.

Trading analysis platform warns of risks when bullish sentiment runs out

However, just as the market was optimistic, Keith Alan, co-founder of the trading analysis platform Material Indicators, remained cautious. He pointed out that the market is currently filled with speculative behavior when examining order book data.

CoinGlass's order book data shows that, as BTC breaks through its historical high, a large number of sell orders are concentrated around $75,500, while buying interest is mainly focused around $73,000 and gradually extends to the $70,000 level.

Image source: CoinGlass Bitcoin liquidation heat map

Material Indicators further indicate:

This week we saw Fluctuation extending in two directions, which means that the bullish news related to the election is being fully digested by the market.

The founder of the on-chain options project, Derive, Nick Forster, also stated that the 'volatility driven by the election' may have peaked, and volatility is expected to remain above normal levels in the short term. However, as the dust settles on the election results, the final volatility may settle at 4% to 5%.

Will BTC possibly fall back to 'this level'?

If BTC pullback, what support levels are worth following? 'Cointelegraph' and analysts mentioned the following points:

200-day SMA and STH-CB

The 200-day simple moving average (SMA) is also known as the Bull Market support line. As of November 6, this average is at $63,546; while the short-term holder's cost base price (STH-CB) is currently at $64,337. These two indicators are typical Bull Market support levels that investors need to follow closely.

The mid-term support level is expected to be between 60,000 and 65,000.

Cryptocurrency analyst Lucky Chart Ape suggests that BTC may experience a 'fall first and then rise' situation in the future, with a potential pullback to the mid-range area of 60,000 to 65,000 US dollars, followed by a rebound to around 70,000 US dollars.

Source: XBTC Perptual Futures PA

Lucky Chart Ape believes that after the election results are finalized, the market may experience a larger Fluctuation. However, as long as BTC can hold the key support level, there is still a chance for a resurgence even if there is a pullback.

Although the news of Trump's possible election has driven BTC to new highs, some analysts believe that investors should not be overly optimistic. After experiencing a strong upward trend, the market may face selling pressure to take profits, and investors should closely follow the performance of key support levels and do good Risk Management.

[Disclaimer] There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific circumstances. Investing based on this is at your own risk.