Trump elected as the 2024 U.S. President not only secured the electoral votes but also won the popular vote, leading the cryptocurrency market to rally. Due to his supportive stance on cryptocurrencies, he continuously pushed Bitcoin to set historical highs, with the overall cryptocurrency market cap increasing by over $200 billion in a single day. The total trading volume of all Bitcoin spot ETFs reached $6 billion on Wednesday, hitting a new high since March. Meanwhile, at three o'clock this morning, the Federal Reserve lowered interest rates by another 25 basis points as expected, under the loose policy, incentivizing Bitcoin to set a new high again today.
In terms of cryptocurrencies, Bitcoin reached a new high of $76422 yesterday before briefly consolidating downwards, until it began a new wave of rallies last night, climbing to $76849 around four o'clock this morning, setting a new historical high again. By the time of writing, it has slightly retreated to around $76108, with the increase in the past 24 hours narrowing to 1.08%.
Bitcoin four-hour chart
First, based on the Bollinger Bands indicator in the 4H level chart of Bitcoin, the price is close to the upper band and deviates far from the middle band, indicating that it is currently in an overbought area after a strong rise, and may face certain adjustment pressure. If the price breaks below the Bollinger Bands middle band, it may further probe down to the support area of the lower band.
Secondly, based on the KDJ indicator in the 4H level chart of Bitcoin, both the K line and D line values are running at high levels, indicating that Bitcoin's price is in an overbought state, and a pullback may occur at any time. If the KDJ three-line values cross downward to form a dead cross, the possibility of a pullback will increase.
Finally, based on the MACD indicator in the 4H level chart of Bitcoin, the DIF line and DEA line show signs of convergence at high levels, and the MACD red histogram is gradually shortening, indicating that the current market's upward momentum is weakening. If the DIF line and DEA line form a dead cross at high levels, there may be a downward trend in prices in the short term.
Bitcoin one-hour chart
First, based on the Bollinger Bands indicator in the 1H level chart of Bitcoin, the price is located between the middle and upper bands, closely following the middle band. The upper and lower bands of the Bollinger Bands are gradually converging, showing signs of reduced volatility, and may consolidate in this area for some time. If the price effectively breaks below the middle band, it may further approach the lower band.
Secondly, based on the KDJ indicator in the 1H level chart of Bitcoin, both the K line and D line values show overbought signals at high levels, indicating that the current market is in an overbought state and may pull back at any time. If the K line and D line values cross downward to form a dead cross, the risk of a pullback will further increase.
Finally, based on the MACD indicator in the 1H level chart of Bitcoin, the current DIF line and DEA line are at a relatively high position, but the two lines are close together, and the MACD histogram has turned from red to green, indicating that the upward momentum is weakening. If the DIF line crosses down through the DEA line to form a dead cross, it will further confirm the downward signal.
Comprehensive analysis, based on the 4H level chart of Bitcoin. The trend of Bitcoin shows strong upward momentum, but due to multiple indicators showing overbought signals, a brief pullback may occur subsequently. Based on the 1H level chart of Bitcoin, the upward momentum of Bitcoin has weakened, and there is a certain possibility of a pullback or consolidation. In the short term, it is recommended to pay attention to whether the MACD forms a dead cross, whether the KDJ overbought signal continues to decline, and the support effect of the Bollinger Bands middle band.
In summary, Daxian provides the following suggestions for reference.
Bitcoin rebounded to around 76600 to short, targeting 75600-75100, with a stop loss at 77000.
Written on: (2024-11-08, 19:15)
（Written by - Daxian says coin）
