Markets cool as ‘Trump trade’ rally pauses, Bitcoin consolidates above $76k

(Kitco News), Fri. Nov. 8th, 2024 )– Financial markets were mixed in early trading on Friday as the ‘Trump Trade’ that boosted asset prices following Donald Trump’s re-election cooled while lingering concerns related to the state of the global economy resurfaced.

“The capital markets have been choppy as pre-existing positioning meets new thoughts on the implications of a second Trump administration,” said Marc Chandler, Chief Market Strategist at Bannockburn Global Forex. “The dollar has found better footing today after giving back a chunk of Wednesday’s gains yesterday.”

“As widely expected, the Federal Reserve delivered a quarter-point cut in the Fed funds target rate to 4.50%-4.75%,” he added. “The odds of another quarter-point cut are near 66%, down from around 82% a week ago. In the current context, today’s September consumer credit report and the preliminary November University of Michigan survey are hardly even distractions.”

The bounce back in the DXY pressured gold and tech stocks, resulting in the Nasdaq falling into the red. But not everything sold off as the S&P continues to trade near record highs, as does the Dow.

At the time of writing, spot gold is down 0.76% on the session, trading at $2,685.50 per ounce.

Data provided by TradingView shows that Bitcoin (BTC) consolidated above $76,000 on Friday morning after hitting a new record high of $77,000 on Thursday afternoon.

BTC/USD Chart by TradingView

“The cryptocurrency market is consolidating near the $2.5 trillion mark after pulling back slightly from the local peak,” said Alex Kuptsikevich, chief market analyst at FxPro. “Judging by intraday performance, the market is undergoing a shakeout of positions as some players close positions related to the idea of a Republican victory. The market’s further momentum will depend on whether politicians continue to support crypto, which creates the risk of volatility.”

“Bitcoin is hovering around [$76k], close to the highs,” he added. “This stabilisation in the 3% range is helping to blow off steam for short-term speculators who were closing in on the idea of a Trump victory. The technical picture has changed a little: Bitcoin is close to the upper boundary of the upward channel, which raises the risk of a corrective pullback. At the same time, after rising above 72, the first cryptocurrency has broken through the upper boundary, suggesting further growth.”

According to TradingView analyst Weslad, the recent rally to new highs for Bitcoin shows just a hint of its potential in the year ahead.

“After the breakdown from this rising wedge, wave (ii) followed, marking a corrective move. Next, wave (iii) of 5 began, characterized by a bullish flag and pole formation,” he highlighted. “This bullish momentum aims to drive BTC to a targeted area of around 78K–80K, which is expected to serve as the completion of wave (iii) of 5. At this level, we anticipate the onset of wave (iv) of 5.”

“If you’ve been tracking our recent BTC updates, this latest surge should come as no surprise,” Weslad said. “In fact, some of our prior analyses have accurately predicted this market move.”

Weslad referred back to a chart he posted previously that “outlines the possible mid-term roadmap for BTC, providing a structured view of the anticipated trend.”

The most recent version of this chart shows Bitcoin largely tracking his projected path, which has a “possible sell-off zone between $90,000 and $115,000.

And according to the analysis he provided in mid-October, the long-term projection for the Bitcoin top in this cycle is $315,000.

As crypto analyst Miles Deutscher noted on X, “The party is just getting started.”

Posted by:

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail