New All-Time High! Bitcoin Flourishes After Trump Win
New Bitcoin ATH May Face Retracement, RSI Shows Bearish Divergence
On Wednesday, November 6, Bitcoin hit a historic All-Time High (ATH) of $76,990 according to Tradingview charts. The favorable wind in its sails was the U.S. Presidential Election, more exactly, Donald Trump’s win. Many have expected this to happen due to Trump’s pro-Bitcoin views and his promise to make America the “crypto capital of the world”.
In a post on X (formerly Twitter), Coinbase said that “America has elected the most pro-crypto Congress in history”. Others on X voiced their opinions that Trump’s election will send Bitcoin to $250,000.
Also on X, Senator Cynthia Lummis wrote in all caps “WE ARE GOING TO BUILD A STRATEGIC BITCOIN RESERVE”, which added more fuel to the fire and pushed Bitcoin even higher.
As we know, spot Bitcoin ETFs have been a major part of Bitcoin’s price action this year and the election did not go unnoticed. Blackrock’s IBIT ETF hit its biggest daily volume at over $4 billion traded. To put things in perspective, this surpasses Visa and Netflix in traded volume.
And Bitcoin is not the only one benefitting from Trump’s win. Ethereum ETF inflows reached a 6-week high and Ethereum itself climbed from $2,400 to almost $2,910 since Election Day.
Solana (SOL) also made significant advances towards a new All-time High, climbing to $199.1. Its ATH was reached in March 2024 and it’s currently $210. Solana sits at the number 4 spot in CoinMarketCap rankings.
Chart Analysis – BTC/USD
Bitcoin is currently changing hands at $76,000, down from the new ATH at $76,990. The previous ATH, reached back in March was followed by a rather deep retracement, caused by profit-taking, so it’s not a stretch to think that the same thing will happen now.
The Relative Strength Index (RSI) touched or breached its overbought level three times in the recent period, which strengthens the case for a pullback. Notice that we have three significant highs: one at $69,000, one just below the previous ATH, at $73,600, and the current ATH. However, the RSI did not mirror this behavior and it never printed a higher high. This is a form of bearish divergence, which warns that a move down is likely to follow.
If the price continues to move higher, the RSI will follow and will probably invalidate this divergence. One thing that’s worth noting is that Bitcoin can move up even while the RSI is overbought, especially if it’s influenced by other factors, which is certainly the case now.
