Bitcoin Sets New Highs and Keeps Climbing

With Donald Trump now confirmed as the new U.S. president, many investors and traders may be feeling a wave of optimism. Trump’s reputation as a "crypto-friendly" candidate suggests the possibility of favorable conditions for the cryptocurrency market.

However, it's crucial to remember that market movements are inherently unpredictable. Staying alert and following sound trading practices remains vital.

4-hour time frame analysis

BTCUSD - 4 Hour Time Frame

Analyzing Bitcoin on a shorter-term, four-hour timeframe, we see an impulsive bullish candle that has broken past the previous market structure high, reaching a new all-time high. While this upward move is a positive sign, it may still be premature to buy.

Entering a trade at this peak requires caution, and placing a Stop Loss below the external higher low is advisable. This placement is informed by market structure theory, which suggests a correction could occur after a significant high or low is breached.

If Bitcoin begins to correct downward, it is wise to wait for more definite entry signals. Using a closer Stop Loss in this scenario can help ensure a trade setup with a relatively low risk compared to the potential reward.

Bitcoin price target

Today’s impulsive rise not only pushed Bitcoin to a new all-time high but also established a critical support zone. This zone could serve as a target for an expected price correction and present an ideal area for placing buy orders. In an optimal case, the price would gradually retrace to this support zone, forming a clearer entry point.

At BITmarkets, we are closely monitoring this potential correction to identify attractive entry opportunities.

By remaining patient and waiting for strategic setups, investors can better manage risk and capitalize on market movements in this post-election environment.