Bitcoin hits new record high just shy of $82,000!

By ForexTime

• Bitcoin has surged over 17% since Nov. 5th US elections day
• The world’s oldest crypto up 90.8% so far in 2024
• Bitcoin outperformed other “Trump trade” assets since Nov. 5th
• Cardano (+72%) is FXTM’s best-performing crypto since Nov. 5th
• Bitcoin may see technical pullback soon

Bitcoin has skyrocketed since the US presidential elections last week.

At the time of writing today (Monday, November 11th), the world’s oldest cryptocurrency came to within a whisker of the big, round number of $82,000.

Here’s how Bitcoin has fared of late:

• +17.3% since November 5th polling day
• +90.8% so far in 2024 (year to date)

Why is Bitcoin hitting new record highs?

President-elect Donald Trump has expressed his desire to make the US the “crypto capital of the world”.

Whatever the “crypto capital” entails, perhaps industry-friendly regulations or even the touted strategic Bitcoin stockpile, markets hope that the incoming Trump administration will foster further innovation in the industry that boosts greater adoption of the asset.

What’s clearer is that crypto investors and traders are not willing to sit around to find out the finer details. They’re already flooding back in to send prices soaring.

This latest wave of crypto fever is evidenced by:

• $1.12 billion of net inflows on Thursday, November 7th, into the world’s largest Bitcoin ETF, BlackRock’s iShares Bitcoin Trust – the largest 1-day net inflow in its history.
• This ETF’s trading volume also rose to an all-time peak on November 7th.

Bitcoin outperforms other “Trump trades”, but lags other cryptos

And Bitcoin’s 17% ascent since Nov. 5th is certainly superior to other “Trump trade” assets for the same period:

• USDInd (US dollar index): +1.7%
• RUS2000 (Russell 2000 index): +6.1%
• JPMorgan shares: +7%
• Goldman Sachs: +11.8%

However, smaller cryptos have outperformed the more illustrious Bitcoin’s 17% since polling day

Here’s a list of cryptos within the FXTM universe that have posted larger gains compared to Bitcoin since November 5th:

• Solana: +24.9%
• Bitcoin Cash: +26%
• Chainlink: +28.4%
• Ethereum: +30.1%
• Avalanch: 31.1%
• Polygon: +34.6%
• Dogecoin: +68.4%
• Cardano: +72.2%

Within the FXTM universe, only Litecoin (15%) and Ripple (+12.8%) has lagged behind Bitcoin’s 17% gain since November 5th.

Bitcoin: ripe for technical pullback?

From a technical perspective, Bitcoin’s 14-day relative strength index is now far higher than the 70 threshold – the textbook level which denotes “overbought” conditions.

At 76.5 at the time of writing, this is the highest reading for the 14-day RSI since mid-March.

The last Bitcoin’s RSI was at this level, it preceded a 23.4% drop for Bitcoin.

The selloff commenced from the March 14th intraday high of $73850 – then a new record high – through to the May 1st  intraday low of $56,457.70 when the RSI moved close to the 30 mark which denotes “oversold” conditions.

Even so, Bitcoin’s downtrend – a series of lower highs and lower low – persisted for nearly 6 months, from mid-March through to early-September.

Of course, the macro environment is far different this time around compared to that March-September downtrend.

Although back then, there was the euphoria surrounding the first-ever Bitcoin ETF and its mid-April halving, crypto bulls did not enjoy the massive boost stemming from “Trump trades”.

Even if Bitcoin were to see a healthy technical pullback over the near-term, once the froth from its recent surge has been cleared, Bitcoin prices may yet recover to seek fresh record highs, provided there’s still more momentum to the ongoing Trump-phoria.

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com