After Donald Trump was re-elected as President of the United States, optimism returned to the cryptocurrency world, pushing Bitcoin (BTC) to nearly $80,000 on Sunday, setting a new historical high.

This support has driven the upward momentum of cryptocurrencies, and their rise currently seems uncontrollable.

The Trump Effect Continues

According to BeInCrypto data, the price of Bitcoin on several exchanges surpassed $80,000, exceeding the previous record (ATH) of over $77,000. Although it slightly retreated to $79,326, the cryptocurrency still showed a significant increase of over 3% within 24 hours.

Analysts largely attribute this growth to optimism about Trump's return to the White House. Many speculate that his administration may adopt favorable cryptocurrency regulations, adding more momentum to the market. Trump himself has also expressed support for the industry, participating in several events, including the Bitcoin 2024 conference, in addition to making multiple commitments related to the medium.

Similarly, the recent global interest rate cuts have boosted Bitcoin's recent price movement. The Federal Reserve and the Bank of England recently cut rates by 25 basis points, which overall increased liquidity while weakening the dollar. These conditions have historically favored risk assets like Bitcoin, making it an attractive choice for investors under loose monetary policies.

What’s Next for Bitcoin

As you can see in the daily chart below, Bitcoin has been rising for the fifth consecutive day. Therefore, if the current momentum continues, the next challenge for buyers will be to establish the asset above the $80,000 level.

If this occurs, it is expected to set a new historical high. The current optimism surrounding the asset may drive this achievement. However, technical patterns indicate that the current upward trend may be saturated, and a brief correction may happen beforehand.

This is mainly due to the Relative Strength Index (RSI) being above 70, the highest level since March. Thus, if a correction occurs, Fibonacci retracement can indicate potential support points.

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