Market participants have been closely watching the so-called “Trump trades” on the back of the election. The cryptocurrency market is one that was strongly impacted by Trump’s victory last week, noting bitcoin subsequently gained about 23%. The charts are a great way to analyze cryptocurrencies like bitcoin given their deep global liquidity and pure supply/demand dynamics. The postelection rally in bitcoin has had a positive impact on the chart from a technical perspective, with a breakout to new all-time highs having been confirmed. The breakout resolves a seven-month long corrective phase to the upside in a bullish intermediate-term development. The weekly MACD is positive after flashing a timely ‘buy’ signal a few weeks earlier. This should allow overbought conditions to be absorbed for some time. The effect of the postelection rally is also meaningful on the monthly chart, which has taken the shape of a bullish cup-and-handle formation. There is a new bullish ‘pop’ higher in the stochastic oscillator, which suggests that the cyclical bull trend is set for another wave higher. The monthly MACD histogram shows an uptick in long-term upside momentum in additional positive technical development. $98,000? Breakouts to new highs often instill questions about upside potential. When there is no resistance left on the charts, we can apply a measured move price projection to derive a target. In the case of bitcoin, an aggressive measured move targets approximately $98.1K, based on the 2023-2024 upmove projected from the corrective low in August. Former resistance near $73.8K is now initial support following the breakout. Investors in bitcoin should welcome the breakout as an extension of the uptrend, and prospective investors should see it as a reason to revisit the chart. We recommend letting bitcoin digest its strong gains of late in a short-term consolidation phase before adding exposure. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. 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Katie Stockton says bitcoin could be headed to $98,000 next after some short-term consolidation
