With Trump’s successful election, the cryptocurrency market appears to have swiftly shed its prior uncertainties. Bitcoin and altcoins have surged, suggesting a potential new bull run. Will Bitcoin’s price keep climbing? When might we see a pullback? This article delves into these market questions.
No Resistance for Bitcoin Price as Bulls Keep Buying
Trump’s election as the next U.S. President has brought significant optimism to the crypto market, as he has previously expressed support for the crypto industry. This has led the market to believe that a Trump presidency will foster long-term growth for cryptocurrencies.
Driven by this sentiment, Bitcoin’s price has skyrocketed, quickly surpassing previous highs. As of November 11, 2024, Bitcoin price is around $81,000. Currently, there’s no resistance level above this point, and data from Coinglass shows Bitcoin exchange balances are steadily declining. This indicates that, contrary to bearish expectations, no significant sell pressure has emerged. The anticipated “buy the rumor, sell the news” event after Trump’s election didn’t unfold as bears had hoped. In the short term, Bitcoin’s price still has room to rise.
However, investors should be cautious. Bitcoin’s recent rapid ascent could mean that any pullback could result in a swift, waterfall-like drop. But for now, no such retracement trend is evident. A pullback, if it occurs, is likely to happen after Ether’s (details below). And if it does, the scale of the drop may exceed market expectations.
Ethereum Faces Sell Pressure
Following Trump’s election, Ether also rebounded sharply from its lows. However, the Ethereum price chart suggests that Ether’s outlook may not be as optimistic as Bitcoin’s.
Firstly, the balance of Ether on exchanges hasn’t decreased like Bitcoin’s; instead, it’s actually risen. This suggests a substantial amount of Ether is waiting to be sold, which could create sell pressure for Ether.
The primary reason for Ether’s lackluster performance this year is its weakened narrative. Bitcoin has maintained a strong narrative as a store of value. For altcoins, however, the market generally expects real-world applications. This is why Solana has recently gained popularity—its blockchain has proven capable of supporting mature meme coins, establishing at least a viable meme casino narrative. By comparison, Ethereum has struggled to meet even this casino narrative. Coupled with continued sales by the Ethereum Foundation this year, market confidence in Ether’s narrative has gradually eroded.
Nevertheless, if Bitcoin’s price continues to soar, Ether might still see gains in a bull market, though its uptrend may not be as robust as Bitcoin’s.
Conclusion
Bitcoin has entered a bull market, with Bitcoin exchange balances continuing to decline, indicating minimal short-term sell pressure. Meanwhile, Ether has also experienced recent price increases, but its rising exchange balances suggest that sell pressure could affect its performance sooner.
In addition, investors could also pay attention to Dogecoin, Pepecoin, and other popular memecoins, as memecoin is a strong narrative in the current market, secondary only to bitcoin.
