2024-11-7 21:23 |
It was an eventful day for Bitcoin as the benchmark cryptocurrency celebrated President-elect Donal Trump’s historic return to the Oval Office with a new all-time high.
When writing this report, the entire market had entered a state of euphoria with even some of the rather slow-moving altcoins of this season flipping green on the day.
UNI, SPX and AAVE led the gains as the overall cryptocurrency market cap climbed up over $2.56 trillion, levels last seen in March when BTC printed its previous high.
Fresh liquidity entered the market but a lot of it moved towards the altcoin market cap as BTC dominance slipped to a weekly low.
CoinMarketCap’s Altcoin Season Index, a metric that gauges whether altcoins are outperforming Bitcoin, hovered near the upper 20s—indicating a Bitcoin season and for good reason.
BTC hit a new all-time high of $75,358.70 on the day as one of the most anticipated catalysts that many experts believe is powerful enough to not only start the next leg up for the flagship but also push it beyond a six-figure price finally materialised.
A pro-crypto administration is set to come into power alongside what Anthony Pompliano, a key figure in the crypto industry, calls the United States’s “first Bitcoin President.”
247 pro-crypto candidates have been elected to the House of Representatives and 15 pro-crypto candidates elected in the Senate greatly outnumber those who don’t favour the crypto sector.
A big win for the industry and a solid catalyst for BTC.
Further, Trump has vowed to fire SEC chair Gary Gensler who has been criticised for stifling innovation in the sector with his “regulation by enforcement,” which has also triggered a market-wide bullish momentum.
Among other factors, a lot of whale accumulation was noted as Trump announced his victory.
On-chain tracker LookOnChain flagged over $135 million worth of BTC moving out of Binance to 11 newly created wallets.
Another whale was seen borrowing $27M from DeFi lending protocol Aave to buy 366.31 WBTC.
More whale movement is likely as the market enters a state of ‘fear of missing out.’
One of the biggest Bitcoin whales, MicroStrategy CEO Michael Saylor, whose company is currently the largest corporate holder of Bitcoin, also announced plans to buy $42 billion worth of Bitcoin.
Traders and analysts believe these factors suggest Bitcoin is prime for more gains on the day and in the coming week, with the cryptocurrency’s historical pattern of never falling back to pre-election prices also playing out in favour.
One Bitcoin was selling for $74,432 at press time, up 7.1% from the day before.
Veteran trader and analyst Pentoshi expects BTC to hover over $100,000 in the coming months.
Analyst Kaleo pointed to BTC’s 22% run following the December 2020 ATH and said something similar could play out in the short term, adding that $90,000 by the end of the week is a possibility.
Meanwhile, pseudonymous analyst Quinten told his over 153,000 followers that a bullish pennant had formed on the BTC hourly chart which if broken on the upside could propel the cryptocurrency to $79,000.
On the flip side, analysts like crypto quant’s Ki Young Ju suggested there might be some profit-taking from those who held onto their positions throughout the bear market which could exert some downward pressure and suppress the rally.
However, he still expects a 30-40% in the coming days.
Coming to the altcoin market, the most profitable assets at the time of writing were:
UniswapUniswap (UNI) led the highest gains among the top 100 cryptocurrencies by market cap.
It was up 30.3% over the past day priced at $9.30 when writing while its market cap stood at a 3-month high of $5.45 billion.
Source: CoinMarketCap
UNI rally comes in response to community hype surrounding the upcoming launch of Unichain, Uniswap’s own application-specific layer-2 blockchain network.
Currently in its testnet phase, the app chain will provide faster, more cost-effective transactions and improved interoperability across blockchain networks.
On the 1-day UNI/USDT chart, the 50-day Exponential Moving Average (EMA) is approaching the 200-day EMA and may soon cross above it, indicating a potential Golden Cross.
This pattern often signals a shift from a downtrend to an uptrend, attracting increased investor attention.
SPX6900SPX6900 (SPX) broke above a descending channel that began forming on October 29, surging over 23% on November 6 and potentially signalling the end of its downtrend.
Its market cap rose to $811 million at the time of writing, up from $594 million the previous day.
Source: CoinMarketCap
The altcoin rallied after centralised exchanges WOO X and CoinEx enabled perpetual trading of the SPX/USDT pair on their platforms.
Typically, a cryptocurrency’s price tends to increase following a listing or new trading pair on an exchange, as it provides greater access and liquidity for traders interested in the token.
Analysts noted that the meme coin was close to breaking a larger ascending wedge pattern that has been forming since August, another typical bullish signal.
A break out from the pattern can lead to a significant upside for SPX over the weeks ahead.
AaveAave (AAVE) rose 24.7% over the past 24 hours, trading at $164.74 while its market cap surged past $2.47 billion.
Source: CoinMarketCap
Aave has recently proposed re-enabling rewards for GHO stakers in its Safety Module, a reserve fund designed to protect the protocol during major shortfall events by allowing users to stake assets like AAVE or GHO in exchange for rewards.
If the proposal is passed, traders expect this to drive demand for AAVE, as rewards will be paid in AAVE tokens, increasing its appeal for staking and likely fueling further price growth.
On the 1-day AAVE/USDT chart, the Relative Strength Index shows a reading of 61, indicating rising buying pressure with room for more gains before reaching overbought territory.
The Moving Average Convergence Divergence indicator supports this outlook, as the MACD line has recently crossed above the signal line, confirming a bullish crossover.
This adds weight to the notion that the upward momentum is strengthening and a potential continuation of the rally could be on the horizon.
The post UNI, SPX, and AAVE surge over 20% as analysts eye a six-figure BTC appeared first on Invezz
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