After several days of sluggish performance and a brief drop to a six-week low below $76,000, bitcoin staged a clear rebound and briefly spiked to $81,000, according to CoinGecko data. The asset has since retreated slightly to around $80,400.
Midterm Elections Trigger Whiplash
The U.S. midterm elections triggered major volatility across financial and crypto markets. Bitcoin initially plunged below $76,000, but once it became clear that the Democrats had secured a decisive victory, the asset headed north and temporarily exceeded $81,000. 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.
Analysts Point to Bullish Signals
Several market observers see reasons for optimism. According to X user Max Crypto, bitcoin formed a daily MACD bullish cross following its price rise, suggesting that “the pump is only getting started.” Another analyst, Ted, predicted a potential ascent to $87,000 if the asset reclaims the $82,000 zone.
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. This suggests some investors have moved away from centralized exchanges toward self-custody, reducing immediate selling pressure. The 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.
Warning Signs Emerge
Despite prevailing optimism, supposed heavy selling by major market players indicates that bitcoin may face a near-term pullback. 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.
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 U.S. 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.
