Bitcoin price hit a new all-time high of $76,825 on Thursday, November 7, and continued to consolidate above the $76,000 level on Friday.
On-chain data trends show unusually high demand for BTC among US-based traders on Coinbase over the past two weeks.
With the US Fed’s 25-basis-point rate cut further fuelling bullish momentum, is BTC price poised for a major breakout above $80,000?
Bulls eye more gains after Fed rate cut as BTC Holds $76K
Bitcoin price has been on the uptrend over the past week, initially fuelled by Donald Trump’s victory at the November 5 polls.
However, the bullish crypto market momentum intensified on November 7, after the US Federal Reserve (Fed) announced a 25 bps rate cut.
Bitcoin daily chart from Binance | BTCUSD
The chart above shows how BTC price raced to new all-time high above $76,800 following the rate cut decision. The Fed rate cut announcement on Thursday added fresh momentum, helping Bitcoin avoid an early pullback.
At the time of writing on November 8, BTC is perched above the $76,250 mark, up 13% from the November 5 election day opening price of $67,866.
With virtually 100% of current Bitcoin holders in profit, the majority appear unwilling to sell amid expectations that the dovish Fed could spur more capital inflows toward the risky assets markets as Q4 2024 unfolds.
Coinbase data shows US demand for BTC at 200-day highs
In response to multiple bullish catalysts from the political landscape and dovish macro-economic tweaks, Bitcoin demand among US-based investors has risen considerably in recent weeks.
CryptoQuant’s Coinbase Premium Index (CP Index) metric serves as a proxy for monitoring demand swings among US investors by tracking the marginal differences in BTC prices quoted on Coinbase and Binance.
The Coinbase clientele is dominated by US-based investors seeking to trade within a more regulated environment, while Binance dominates global retail trading.
Hence, during periods of intense buying pressure among US investors, the CP index swings into positive values as Bitcoin prices rise on Coinbase marginally, above prices quoted on Binance, and vice versa.
Bitcoin price vs. Coinbase Premium Index (CP Index) | Source: CryptoQuant
The chart above shows that the Bitcoin Coinbase Premium Index has consistently trended upward in the last 14 days. The CP Index rose from -0.02 on October 25 to hit a 220-day peak of 0. 09 on November 7.
This reflects a 145% Bitcoin demand surge among US investors over the last two weeks, propelled by the euphoria of Donald Trump’s victory.
Following the Fed rate cut on November 7, the Bitcoin CP index remains in positive territory, signaling that buying momentum remains strong despite prices trending toward all-time highs.
If this trend persists, Bitcoin price could potentially enter another leg-up toward the $80,000 level in the days ahead.
Bitcoin Price Forecast: $80K hopes alive if $76K support holds
Bitcoin's price action continues to show bullish momentum, with prices on Binance trading above the VWAP, signaling that buyers are paying premiums to acquire BTC.
This demand intensity reinforces the upward trend as traders are eager to lock in positions, pushing prices higher. As long as the $76,000 support holds, the path to an $80,000 breakout remains intact.
Bitcoin Price Forecast | BTCUSD
In terms of upward price actions, Bitcoin’s next major resistance level lies at the $80,000 milestone price level.
The Keltner Channel bands on the chart also support this bullish outlook, as BTC is trading near the upper band, indicating strong momentum.
On the downside, failure to hold $76,000 could see Bitcoin pull back toward the middle Keltner line around $70,275. However, BTC trending above its current VWAP, suggests buyers remain dominant, keeping the $80,000 target within reach.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: Further upside likely after hitting new all-time high
Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.
Cardano breaks above descending trendline, eyes April high as bullish momentum builds
Cardano extends gains on Friday, following a close above a descending trendline the previous day. Technical indicators and on-chain data show bullish momentum, suggesting a rally ahead.
Top 3 Price Prediction: BTC touches new all-time high near $77,000 following Fed rate cut
Bitcoin price rallied and reached a new all-time high of $76,849 following the US Federal Reserve’s 25 basis point rate cut. Ethereum and Ripple followed suit and closed above their key resistance levels, hinting at a possible rally ahead.
Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut
Fed Chair Jerome Powell stated that the FOMC lowered the Fed funds rate by 25 basis points. The rate cut comes after Bitcoin reached a new all-time high price upon Donald Trump's election victory.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin (BTC) surged more than 10% this week, hitting a new high of $76,849 on Thursday, buoyed by the crypto-friendly candidate Donald Trump’s victory in the US presidential election.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.