TLDR
Bitcoin reached new all-time high of $75,358 following Trump’s reelection announcement
Price experienced 10% surge before correcting to $74,037
CryptoBullet’s analysis suggests Bitcoin dominance might be peaking based on TD Sequential indicators
Analyst Ali predicts possible pullback to $72,000 unless price stays above $75,400
MVRV ratio analysis indicates Bitcoin market hasn’t reached “overheating stage” yet
Bitcoin has reached a new all-time high of $75,358, marking a historic moment in the cryptocurrency’s 15-year history.
The price surge occurred following the announcement of former U.S. President Donald Trump’s re-election as the 47th President of the United States.
The leading cryptocurrency experienced a sharp 10% increase within 24 hours before undergoing a minor correction. At the time of reporting, Bitcoin trades at $74,037, representing a 1.1% decrease from its peak value.
Market analysts have begun examining various technical indicators to understand the sustainability of this price movement.
CryptoBullet, a prominent market analyst on X (formerly Twitter), has focused attention on Bitcoin’s dominance index (BTC.D) in relation to the TD Sequential indicator.
The TD Sequential, a technical analysis tool used to identify potential trend reversals, has shown interesting patterns.
CryptoBullet points out that Bitcoin dominance is displaying its second TD-9 Sell signal on the two-week timeframe during this cycle.
Is #BTC #Dominance finally topping out? 🤔$BTC.D is printing the second TD-9 Sell on the 2W timeframe this cycle 👀
IMO this is something worth paying close attention to.
💡 We can see the same pattern repeating itself over and over again: no matter which direction #BTC… pic.twitter.com/j7Y3kGaQXJ
— CryptoBullet (@CryptoBullet1) November 6, 2024
Historical data from 2018, 2019, and 2021 reveals similar patterns where second TD-9 signals often preceded market reversals.
This observation has led some analysts to suggest that Bitcoin’s market dominance might be approaching a peak.
Another market analyst, Ali, has provided additional insights based on shorter timeframes. According to Ali’s analysis of the four-hour chart, the TD Sequential has produced a sell signal, suggesting a possible price retreat to $72,000.
However, Ali notes that this bearish scenario could be invalidated if Bitcoin maintains a price above $75,400. In such a case, the analyst suggests the possibility of further gains, potentially pushing Bitcoin toward $78,000.
If you’re late to the bull party, take caution: the TD Sequential just flashed a sell signal on the #Bitcoin $BTC 4-hour chart, hinting at a possible pullback to $72,000.
However, a sustained close above $75,400 would invalidate this bearish setup and trigger an upswing to… pic.twitter.com/Ljd8lyPsM4
— Ali (@ali_charts) November 6, 2024
The MVRV (Market Value to Realized Value) ratio, an on-chain metric used to assess Bitcoin’s relative valuation, has become a point of focus.
MAC.D, a CryptoQuant analyst, explains that this ratio helps determine whether Bitcoin is undervalued or overvalued compared to its historical price levels.
Current MVRV readings indicate that Bitcoin has not entered what analysts call an “overheating stage.” This suggests room for additional price appreciation, though the rate of increase may slow as market capitalization grows.
MAC.D elaborates that market maturity typically leads to more gradual price movements. Based on current trends, the analyst suggests that market overheating might occur when the MVRV value approaches 3.
Trading volumes across major exchanges have increased substantially during this price movement, indicating strong market participation.
The surge in activity spans both spot and derivatives markets, showing broad-based involvement from various types of traders and investors.
Price action has been accompanied by increased social media activity and public interest, as measured by search engine trends and social media mentions. This heightened attention often correlates with periods of price discovery in the Bitcoin market.
The recent price movement has triggered numerous technical indicators that traders use to gauge market momentum.
These include various moving averages and momentum oscillators, which currently show mixed signals across different timeframes.
Market depth data shows substantial support levels have formed around the $72,000 mark, while resistance appears lighter above current prices. This technical structure suggests the potential for continued price discovery if buying pressure maintains.
Futures market data indicates a balanced positioning among traders, with funding rates remaining relatively neutral despite the price increase. This suggests the rally has been primarily driven by spot market buying rather than excessive leverage.
The price achievement comes as Bitcoin continues to see increased institutional adoption and regulatory clarity in various jurisdictions. These fundamental factors have contributed to market confidence during this price discovery phase.
