Bitcoin breaks above its all-time high of $73,777 ahead of election results
- Bitcoin breaks above its all-time high of $73,777 on Wednesday as Donald Trump leads on the poll.
- The momentum indicators support Bitcoin's rise as it shows bullish bias.
- BTC's next target could be the 141.40% Fibonacci extension level at $78,777.
Bitcoin (BTC) broke above its all-time high of $73,777 on Wednesday, fueled by Donald Trump's lead in the polls. Momentum indicators confirmed a bullish bias. BTC's next target could be the 141.40% Fibonacci extension level at $78,777.
Bitcoin breaks above its all time high of $73,777
Bitcoin price faced rejection around its all-time high (ATH) of $73,777 on October 29 and declined 6.65% in the next six days. However, it found support around $67,000 on Monday and rose 2.24% until Tuesday. At the time of writing on Wednesday, it breaks above its ATH and trades around above $74,700.
A successful daily close above its all-time high of $73,777 level could pave the way for BTC to target the 141.40% Fibonacci extension level (drawn from July’s high of $70,079 to August’s low of $49,072) at $78,777.
The Relative Strength Index (RSI) on the daily chart has bounced off from its neutral level of 50 and reads 68 as of Wednesday, indicating that the bullish momentum is gaining traction.
BTC/USDT daily chart
However, if BTC fails to close above $73,777 level and decline, it may retest the key psychological level of $70,000.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Manish Chhetri
FXStreet
Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.
