Bitcoin ($BTC) smashed through its all-time high early on Wednesday and recorded a new high of $75,400. All this taking place as Donald Trump recorded a momentous win in the U.S. election.
Bitcoin throws off the shackles as Trump win becomes clear
Whether republican candidate Donald Trump was going to win the U.S. election or not, it was always going to be a major factor in the immediate fortunes of Bitcoin. That said, perhaps not many were expecting the enormous and instant price surge that sent $BTC through its all-time high and beyond, at the time that it became obvious a Trump win was inevitable.
By early Wednesday morning, the picture became clear. Of the seven swing states, Trump had already won Georgia, N. Carolina, Wisconsin, and the vitally important prize of Pennsylvania. He was also up in the remaining three swing states, but with the four aforementioned states already won, he had already surpassed the 270 electoral votes needed.
As the drama unfolded, the king of the cryptocurrencies started on its inexorable climb to a price last seen in early March of this year. When the previous all-time high was finally reached and surpassed, this put a whole new perspective on Bitcoin and crypto in general. This said, it might be expected that the alpha cryptocurrency now moves into the final, most exciting stage of its bull run.
$BTC reaches top of ascending channel
Source: TradingView
The 4-hour chart for the $BTC price (BTC/USD) displays an ascending channel, within which $BTC has been traversing for the last couple of weeks. The strong surge seen in the first tall green candle on Wednesday sent the price to the top of the channel, where it appears to be consolidating now.
It can also be observed how the $BTC price has consolidated well above the major $69,000 resistance, now flipped into support, of the previous bull market top.
It now remains to be seen whether the price will be rejected from this channel top, or whether it will power on through now that the all-important higher high has been achieved.
If the price is rejected from here, another possible retest of the $69,000 support could occur. Whereas, if the price does break through, $77,800 is the 1.618 Fibonacci extension for this current move.
$BTC Fibonacci extension levels predict potential future prices
Source: TradingView
Looking at the Bitcoin price on the weekly time frame, one can use the Fibonacci extension levels to give an idea of where the price could go to from here. The first extension for the 1.618 can be found at $102,000, which does make a lot of sense, given the huge round number it is just above.
Also, to give a good idea of just how accurate the Fibonacci sequence is, one only has to look at the 0.618 level, and how precisely it has provided resistance and support during this bull market.
If Bitcoin does decide to climb even higher, the 2.618 Fibonacci comes in at $155,000 – an extremely exciting and mouth-watering prospect. However, one step at a time. Bitcoin needs to consolidate its gains on Wednesday. The path ahead is sure to be full of many more twists and turns.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
