Bitcoin bounces from 7-week low under $76K as Democrats sweep Congress

Bitcoin (BTC) sought to erase 3% overnight losses on Wednesday as crypto markets digested the Democratic sweep of the midterm elections.

Key points:

• Bitcoin fell to $75,618 as Democrats won control of both the House and Senate in the US midterm elections.
• BTC/USD rebounded to overhead resistance at $78,000, while S&P 500 futures were down 0.3% on Wednesday.
• Analysts warned that BTC must defend its 50-week moving average, now at $75,733, to avoid a deeper correction.

US midterm vote sparks sub-$76,000 BTC price dip

Data from TradingView showed BTC/USD falling into Tuesday’s daily close as election results came in, with Democrats going on to win control of both the House and Senate. The pair dropped to a low of $75,618 on Bitstamp, a level last seen on Sept. 16, before rebounding as high as $78,039 over the next three hours.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Data from CoinGlass showed the price dip liquidating late BTC long positions below $76,000, while a wall of asks kept upside contained below $78,000. Total crypto long liquidations over the past 24 hours stood at $288 million.

BTC liquidation heatmap. Source: CoinGlass

In comments sent to Cointelegraph, Kelly Ye, head of research at institutional digital asset trading platform Talos, said that markets had largely priced in the election outcome.