Bitcoin fell to $75,618 on Tuesday as results from the US midterm elections showed Democrats winning control of both the House and Senate. The price later rebounded, reaching $78,039 within three hours, as crypto markets absorbed the election outcome. The low was Bitcoin’s weakest level since Sept. 16.
The drop liquidated long positions below $76,000, while selling interest limited the recovery below $78,000, according to CoinGlass data cited by Cointelegraph. Total crypto long liquidations over the preceding 24 hours reached $288 million.
Kelly Ye, head of research at digital-asset trading platform Talos, said markets had largely anticipated the election result. She noted that Bitcoin moved about 1.7% after polls closed, close to the 1.8% move priced into options, and said there had been no major leverage flush.
Bitcoin’s low also came close to its 50-week simple moving average, which stood at $75,733 and had acted as support since mid-September. Material Indicators co-founder Keith Alan described that level as important for bulls, warning that a failure to hold it could lead to a deeper correction.
Trader and analyst Rekt Capital continued to point to resistance on Bitcoin’s three-day chart. He said a pattern of lower highs could eventually guide the price back toward $75,500. Meanwhile, US stock futures were also lower, with S&P 500 and Nasdaq 100 futures each down about 0.3% at the time of the report.
Sources: Cointelegraph.