After the results of the U.S. mid-term elections prompted the market to re-evaluate the regulatory prospects for cryptocurrencies, Bitcoin has rebounded from a level of $75,700 to above $77,000.

During the mid-term elections in the United States, the price of Bitcoin rebounded to around $77,600, after previously falling to near $75,700. NBC News expects that the Democratic Party will control both houses of Congress, which raises doubts again about the cryptocurrency legislation under consideration by the market.

Santiment reports that the sentiment towards Bitcoin is bearish, with the ratio of positive to negative comments being only 0.51.

US spot Bitcoin ETF recorded a net outflow of $115.56 million on November 3, continuing the capital withdrawal from previous trading days.

Analysts are focusing on the support level around $75,500 to $76,500, as well as the resistance level between $78,000 and $80,000.

According to the price data from crypto.news, the trading price of Bitcoin was close to $77,600 at the time of reporting, showing some recovery from the previous decline. The cryptocurrency approached $78,000 later on Tuesday, but then fell back as election results began to be announced.

This rebound has brought Bitcoin back into an upward trend within the past 24 hours, although the price is still below $80,000 and also below the high of nearly $86,000 reached in October.

In the meantime, Ethereum rebounded to trade around $2,300, with XRP approaching $1.28. Solana rose back to around $93, while BNB traded in the vicinity of $700.

In addition, as investors assessed the election results and the potential changes they might bring to economic policy, U.S. stock index futures and Asian stock markets weakened.

Bitcoin price reacts to the Democratic Party's victory in midterms

After the elections on Tuesday, the Democratic Party is expected to regain control of both chambers of Congress, reversing the Republican majority that was established after the 2024 votes.

NBC News It is expected that the Democratic Party will win in both the House of Representatives and the Senate, however, as the counting continues, the results for some individual districts are still undecided.

The election results have brought CLARITY Act back into the spotlight. This bill aims to establish federal regulations for cryptocurrency trading and clarify how digital assets should be regulated.

The bill stalled in September due to a procedural vote in the Senate that failed to obtain the 60 votes required to proceed with debate.

However, the opposition within the Democratic Party is not entirely unified. As previously reported by crypto.news, seven Democratic senators subsequently expressed interest in resuming negotiations.

Their objections include provisions regarding political officials holding cryptocurrencies, as well as how regulatory responsibilities should be divided.

Industry groups invested a large amount of money before the elections. A campaign finance review in October found that political expenditures related to cryptocurrencies amounted to approximately $176 million in over 100 campaigns.

Stand With Crypto endorsed 45 candidates separately to support digital asset legislation.

ETF As capital outflows continue, Bitcoin sentiment weakens

According to data from blockchain analysis company Santiment, during the election tallying period, the sentiment among retail cryptocurrency investors deteriorated.

Santiment stated in the update on November 4th that the ratio of bullish to bearish comments on Bitcoin has dropped to approximately 0.51.

On October 20th, the platform recorded that for each negative Bitcoin review, there were approximately 1.8 positive reviews. Subsequently, after the Binance security vulnerability in October, sentiment further weakened.

That ratio once dropped to 0.37, then rebounded, and turned negative again during the period when the results of the mid-term elections were announced.

Santiment indicates that once election forecasts become clearer, there may be a behavior in the market of 'selling expectations and buying facts', but such a reversal is still uncertain.

Institutional demands are also under pressure.

SoSoValue data shows that US spot Bitcoin ETF recorded a net outflow of $115.56 million on November 3rd. Prior to that, on November 2nd, there was an outflow of $398.6 million, and on October 30th, an outflow of $643.3 million.

Previously, the price of Bitcoin fell, coinciding with the withdrawal of investment funds, the liquidation of leveraged positions, and the weakening of tech stocks.

On November 2nd, IBIT under BlackRock recorded a capital outflow of $405.3 million, while the inflows from other funds offset those losses.

Bitcoin Price Forecast: Can BTC Return to $80,000?

The rebound of Bitcoin has brought multiple technical resistance levels back into focus, yet momentum indicators still show weakness.

The daily chart provided shows that Bitcoin's Relative Strength Index (RSI) is at 39.87, which is below the neutral level of 50. Its moving average is 40.74.

At the same time, MACD remains negative, MACD is at -1,293.01, and the signal line is at -955.85.

The bar chart shows -337.16, but since the negative value column is shorter, it indicates that the selling pressure may have begun to weaken.

Cryptography analyst Rekt Capital warned on X that Bitcoin is facing two direct three-day resistance levels.

He stated that if there are continued obstacles, it could form another lower high point, and ultimately push the price towards $75,500.

Another market analyst, Ted, mentioned the historical pullbacks of Bitcoin during the mid-term elections.

He believes that prices may fall again, but "they will not drop to a new cycle low," which is different from predictions of a more substantial market downturn.

More Crypto Online believes that the current callback may still be of a corrective nature and is expected to recover in the medium term.

However, the analyst stated, "There is currently no indication that the lowest point has been reached," which means that there is still a possibility of further weakness in the future.

In terms of the short-term price outlook for Bitcoin, $78,000 remains the first resistance level, followed by $79,000 and $80,000.

Below the current price, traders are watching 76,500 dollars, followed by 75,500 dollars and the recent low of 75,700 dollars.

Bitcoin futures funding rate rises to a two-month high

In an analysis under CryptoQuant, analyst Arab Chain stated that the funding rate for Binance's Bitcoin futures has risen to its highest level in over two months.

The reading is 0.01, while the 30-day moving average is approximately 0.004557.

A positive funding rate means that traders holding long positions need to pay a fee to those holding short positions, indicating a stronger demand for bullish leverage exposure.

Arab Chain warns that if the price of Bitcoin suddenly falls, the increased long positions could pose a liquidation risk.

When the analyst recorded this increase in funding rates, the trading price of Bitcoin was around $77,000.

Disclosure: This article does not constitute investment advice. The content and materials provided on this page are for educational purposes only.