“I think there will be a much stronger breakout in the coming weeks as a follow-up,” Michael van de Poppe said.
After several days of sluggish performance and a brief price drop to a six-week low below $76,000, the primary cryptocurrency finally staged a clear rebound and briefly spiked to $81,000.
The big question now is whether this move has enough strength to evolve into a larger rally or if sellers will quickly step back in. See what popular analysts say and explore indicators that could hint at where the market is headed next.
Just the Beginning?
The midterm elections in the USA triggered major volatility for the financial and crypto markets, as BTC initially plunged below $76K. However, once it became clear that the Democrats had secured a decisive victory, the asset headed north and temporarily exceeded $81,000 before slightly retreating to the current $80,400 (per CoinGecko).
The most likely catalyst for this whipsaw move is reduced uncertainty, while a recovery in broader financial markets may also have helped the crypto sector.
According to X user Max Crypto, BTC formed a daily MACD bullish cross following its price rise, suggesting that “the pump is only getting started.” Ted is also an optimist, predicting a potential ascent to $87,000 if the asset reclaims the $82,000 zone.
For his part, Michael van de Poppe said holding $79,000 is “a strong signal” for the cryptocurrency, suggesting bulls could build further momentum as long as the price stays above that level.
“Given that we’ve just seen the first impulse in the market, I think there will be a much stronger breakout in the coming weeks as a follow-up,” he added.
One potentially bullish factor is the declining amount of BTC stored on exchanges. CryptoQuant’s data shows that the figure recently dropped to a nearly five-month low of around 2.83 million coins.
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This suggests some investors have moved away from centralized exchanges toward self-custody, reducing immediate selling pressure. It is important to note that this development has become especially notable after the $6.3 billion hack on Binance, which triggered a wave of withdrawals as users rushed to move funds to private wallets amid the chaos.
The Warning Signals
Despite prevailing optimism among market observers, supposed heavy selling by major market players indicates that BTC may face a near-term pullback. As CryptoPotato reported, Trump Media Group (the entity behind Truth Social) has transferred 4,259 BTC (worth over $340 million) to Crypto.com. In most cases, these developments precede a sale.
For its part, the Bitcoin miner MARA Holdings moved more than $130 million worth of the cryptocurrency to several platforms, including Galaxy Digital and Copper.
Perhaps the biggest red alert is the increased global geopolitical tension following the Republicans’ loss in the midterm elections. According to The Kobeissi Letter, Trump’s administration and the US military are finishing preparations for “a possible resumption of major combat operations in Iran.”
Renewed attacks on the Asian country could rattle financial markets, reduce appetite for risk-on investments such as cryptocurrencies, and result in surging (even more) prices of petrol, which may further dampen investor sentiment.
