Bitcoin Rebounds After 7-Week Low as Democrats Sweep Congress, Back Near $76K

Bitcoin attempted to trim Wednesday’s losses after a sharp post-election dip, as traders digested results from the US midterm elections. After falling to $75,618—an area last seen in mid-September—BTC/USD rebounded toward the $78,000 zone, with analysts pointing to a key long-term support level near the 50-week moving average.

The move came alongside a broader risk-asset wobble: S&P 500 futures were down around 0.3% in early trading, mirroring the initial uncertainty seen in markets after the election outcome.

Key takeaways

• BTC/USD tested $75,618 after Democrats won control of both the US House and Senate, before rebounding toward $78,039.
• CoinGlass data showed late liquidation of BTC long positions below $76,000, with total crypto long liquidations at $288 million over 24 hours.
• Analysts highlighted the 50-week simple moving average at about $75,733 as a critical “line in the sand” for buyers.
• Overhead resistance around $78,000 appeared to limit upside after a failed push higher earlier this week.

Election-driven selloff meets muted leverage unwind

TradingView data showed BTC/USD slipping into Tuesday’s daily close as election results came in. According to earlier reporting tied to the election outcome, Democrats went on to win control of both the House and Senate.

On Bitstamp, BTC dropped to $75,618 during the selloff, then recovered over the next few hours, reaching as high as $78,039. Despite the volatility, institutional trading research suggested the reaction was closer to what options markets had already anticipated.

In comments sent to Cointelegraph, Kelly Ye, head of research at institutional digital asset trading platform Talos, said markets had largely priced the election outcome. She noted that Bitcoin moved roughly 1.7% after polls closed, close to the ~1.8% implied by options, and that there was no broad “leverage flush” that would suggest a systemic squeeze or forced unwind.

CoinGlass data reinforced the idea that the decline did not turn into a disorderly cascade, but it did show a clear pocket of liquidation activity: late BTC long liquidations below $76,000 and a supply wall that helped cap upside below $78,000. Over the past 24 hours, CoinGlass recorded total crypto long liquidations of $288 million.

US stock futures reflected a similar pattern. S&P 500 and Nasdaq 100 futures were each down about 0.3% at the time of writing, with early weakness followed by partial recovery.

Why macro concerns still matter for crypto traders

Beyond election headline risk, equity-market commentary also pointed to potential implications for the broader investment cycle—particularly around data-center spending. Anthony Saglimbene, chief market strategist at Ameriprise Financial, told CNBC that concerns about data-center buildout and wider AI-related capital expenditure were contributing to an adverse reaction to the Democratic gains.

In the same vein, political signals appeared to be shifting toward cooperation. In an interview with The Wall Street Journal, US President Donald Trump—who previously said he could become “Mr. Veto” to block Democratic initiatives—took a more conciliatory tone, saying he expected to work with Democrats.

For crypto investors, the practical takeaway is that BTC’s near-term trading behavior is still closely tied to how markets price policy and capital-spending expectations, not only to crypto-specific catalysts. Even when the initial election move is broadly “priced,” the follow-through depends on whether investors interpret policy as supportive or restrictive for the sectors that dominate equity sentiment.

Key technical focus: defending the 50-week moving average

Technically, the BTC selloff aligned with a widely watched benchmark: its 50-week simple moving average (SMA). Multiple traders cited this level as the near-term threshold that could determine whether the market stabilizes or slides further.

In a post on X, Keith Alan, co-founder of crypto trading suite Material Indicators, described the 50-week SMA as a “line in the sand” for Bitcoin bulls. The argument was straightforward: if BTC fails to hold that trendline support, it could encourage a more meaningful correction rather than a quick mean reversion.

That view also fits the context of price action around $78,000. Crypto analyst Rekt Capital, who had earlier flagged the risk of BTC dipping below $76,000 after a failed breakout attempt above $78,000, continued to emphasize overhead resistance on the three-day chart. In Wednesday commentary on X, Rekt Capital suggested that “3-Day Lower Highs” could guide price back toward the approximately $75.5k area over time.

With the 50-week SMA sitting near $75,733, the market effectively faces a two-sided technical problem: bulls need to defend support quickly to prevent a deeper drawdown, while buyers also need to reclaim the $78,000 ceiling to prove the rebound has real momentum rather than short-covering.

What to watch next as volatility settles

Traders will likely focus on whether BTC can hold the 50-week SMA area around $75.7k and break through the $78,000 resistance zone. The next signals may come from follow-through in liquidations and price structure—specifically whether the market prints higher lows after the liquidation-driven dip, or whether repeated rejection near $78,000 pushes bids back toward the mid-$75k range.