Bitcoin price has reclaimed $78,000 after falling to a seven-week low near $75,600 as the U.S. midterm election results initially unsettled cryptocurrency markets.
- Bitcoin price has reclaimed $78,000 after briefly falling toward $75,600 during the U.S. midterm election results.
- Democrats won control of both chambers of Congress, raising questions about President Donald Trump’s cryptocurrency legislative agenda.
- Ali Martinez identified the $75,875 short-term holder realized price as a possible support level for Bitcoin.
- U.S. spot Bitcoin ETFs recorded $115.6 million in net outflows on November 3, taking withdrawals above $1.15 billion across three sessions.
- Analysts are watching whether Bitcoin can maintain its recovery and reclaim resistance near $79,500.
According to crypto.news market data, BTC recovered to approximately $78,300 on November 4, trading nearly 1% higher after erasing its earlier losses. The rebound followed a volatile session that saw Bitcoin briefly fall below $76,000 before buyers returned.
The recovery came as Democrats secured control of both chambers of Congress, giving President Donald Trump a divided government for the remaining two years of his term.
Although Bitcoin recovered from its intraday low, the cryptocurrency remained below $79,500, a resistance level that traders have been monitoring during the recent downturn.
Bitcoin price rebounds as U.S. midterm uncertainty fades
Bitcoin initially struggled as election results showed Democrats winning majorities in both the House of Representatives and Senate.
The cryptocurrency dropped toward $75,600, its lowest level since September 17, after failing to maintain support around $77,000.
U.S. stock futures experienced similar selling pressure, with Nasdaq 100 futures falling as investors assessed the election results. Treasury yields and the U.S. dollar weakened during the initial market reaction.
Democratic control of Congress could complicate parts of Trump’s cryptocurrency agenda, including legislation intended to establish clearer rules for digital asset markets.
The election results leave Republicans without congressional majorities, although Trump retains the power to veto legislation passed by lawmakers.
Despite the initial decline, Bitcoin quickly recovered above $77,000 and subsequently crossed $78,000 as financial markets steadied.
Wednesday’s continued rebound carried the price toward $78,300, although BTC remained below its recent trading range near $80,000.
Crypto analyst Michaël van de Poppe described the recovery as a possible “Sell the rumor, Buy the news” reaction following the election.
“I’m extremely bullish on #Bitcoin from here,” he wrote.
“I’m extremely bullish on #Bitcoin from here,” he wrote.
Van de Poppe believes the recent decline may have established a local bottom. He expects further gains if Bitcoin forms a higher low following Wednesday’s recovery.
Bitcoin analyst identifies $75,875 as potential support
Crypto analyst Ali Martinez has identified the short-term holder realized price as an important level following Bitcoin’s recent decline.
Martinez noted that Bitcoin had dropped to $76,195, approaching the short-term holder realized price of $75,875.
The metric represents the average acquisition price of coins held by investors who purchased Bitcoin relatively recently.
Martinez compared the latest decline with three previous occasions when Bitcoin approached similar cost-basis levels before recovering.
In March 2023, BTC bottomed at $19,979 while the corresponding realized price stood at $19,794.
A comparable movement occurred in June 2023, when Bitcoin reached $25,130 against a realized price of $25,600.
The analyst identified another example in May 2024, when BTC fell to $58,325 while the realized price stood at $58,570.
Based on those comparisons, Martinez declared, “BITCOIN BOTTOM IS IN. TIME TO PUSH HIGHER.”
His assessment remains a market prediction, with Bitcoin needing to sustain buying interest after recovering from the latest selloff.
Separately, analyst Doctor Profit said Bitcoin was testing a resistance area he calls “Level 2” around $78,400, following the market disruption caused by the Binance hack.
The analyst argued that reclaiming this level through daily closes would provide stronger evidence that buyers had regained control.
Bitcoin ETF outflows
Despite Bitcoin’s recovery, U.S. spot exchange-traded funds continued recording net withdrawals during the latest trading session.
As crypto.news reported earlier today, the funds lost approximately $115.6 million on November 3, marking their third consecutive trading day of outflows.
The latest withdrawals followed $398.6 million on November 2 and $643.2 million on October 30, bringing the three-session total to approximately $1.16 billion.
BlackRock’s IBIT accounted for roughly $95 million of the latest withdrawals, following $405.3 million in redemptions during the preceding session.
Fidelity’s FBTC and Bitwise’s BITB recorded smaller inflows, but their purchases were insufficient to offset the withdrawals from other products.
The November 3 figure was considerably lower than the previous two sessions, even as the funds remained negative overall.
The selling followed the October 30 ETF withdrawals, when investors removed their largest daily amount since June.
Bitcoin had previously recovered toward $78,000 on November 2 after the $6.3 billion Binance hack disrupted cryptocurrency trading.
Market analysts have identified $79,500 as the next important resistance level, followed by the psychological $80,000 mark. Meanwhile, the 75,600–76,000 region remains the nearest support area established during Wednesday’s selloff.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
