Bitcoin rebounds from seven-week low of $75,618 as US midterm results land
In brief
- BTC/USD hit $75,618 on Bitstamp, a level last seen Sept. 16, per TradingView data.
- Bitcoin rebounded as high as $78,039 over the next three hours.
- Crypto long liquidations totaled $288 million over 24 hours, per CoinGlass data.
- Talos research head Kelly Ye said markets had largely priced in the election.
- The $75,618 low lined up with Bitcoin's 50-week simple moving average.
Longs flushed below $76,000
BTC/USD slid into Tuesday's daily close as election results came in, according to TradingView data. The $75,618 low (a level last seen on Sept. 16) didn't hold for long.
On Wednesday, Bitcoin tried to recover 3% in overnight losses as crypto markets absorbed what Cointelegraph reported as a Democratic sweep of the midterms, with Democrats winning control of both the House and the Senate. CoinGlass data showed the dip liquidating late BTC long positions below $76,000, while a wall of sell orders (asks) kept the price under $78,000. Total crypto long liquidations over the past 24 hours came to $288 million.
"Largely prepared for it"
Kelly Ye, head of research at Talos, said markets had largely priced in the election outcome. By her count, Bitcoin moved about 1.7% after the polls closed, close to the roughly 1.8% move options had priced in.
"Bitcoin moved about 1.7% after the polls closed, close to the roughly 1.8% options had priced, and there was no major leverage flush. The election was the main event, but markets had largely prepared for it,"
US stock futures moved the same way, falling at first and then recovering some losses. S&P 500 and Nasdaq 100 futures were each down about 0.3% at the time of Cointelegraph's report. Anthony Saglimbene, chief market strategist at Ameriprise Financial, told CNBC that concerns over data-center and broader AI capital spending were driving a negative market reaction to the Democratic gains.
President Donald Trump, who'd earlier said he could become "Mr. Veto" to block Democratic policy initiatives, took a conciliatory tone in a Wall Street Journal interview, according to Cointelegraph.
The 50-week line
Bitcoin's drop to $75,618 coincided with its 50-week simple moving average (SMA), a trend line that's held as support since mid-September. Keith Alan, co-founder of Material Indicators, called the 50-week SMA a line in the sand for Bitcoin bulls. If they don't defend it, Alan argued, that would open the door to a deeper correction.
That's his forecast, and it's tied to a specific level. Right now, this week's low and the 50-week SMA sit at the same spot on the chart.
