Bitcoin stages V-shaped recovery after dipping below $76,000 as midterm uncertainty fades
Bitcoin has erased its election-night losses in a sharp V-shaped recovery, rebounding from below $76,000 towards $78,000 as clearer United States midterm results eased political uncertainty, even as heavy ETF outflows continue to weigh on the market.
Bitcoin has staged a sharp V-shaped recovery after dipping below $76,000, erasing its election-night losses as clearer results from the United States midterm elections eased the political uncertainty that had rattled markets. The world's largest cryptocurrency fell through the level in early trading on Wednesday before rebounding to trade higher on the day.
The figures in this report were checked at about 11:52 PKT on Wednesday 04 November 2026. At that point Bitcoin had recovered to around $77,900, according to CoinDesk, after printing an intraday low of approximately $75,630 on some exchanges, while other reports put the overnight low near $75,740.
The round trip was swift. Before the vote, Bitcoin had been trading near $77,500. It then slid as returns showed Democrats winning control of both chambers of Congress, a setback for the pro-crypto President Donald Trump, before buyers stepped back in and pushed it back towards $78,000, a gain of about 0.5 percent on the day at the time of CoinDesk's report.
The move mirrored the wider market. Nasdaq futures, which had fallen more than 2 percent as NBC News projected a Democratic House victory, pared their decline to about 0.3 percent, and the broader crypto market also steadied after an initial drop of close to 3 percent in total market value over 24 hours.
Analysts pointed to positioning as much as politics for the speed of the rebound. Markus Thielen, founder of 10x Research, said a momentum indicator suggested Bitcoin was oversold and could climb towards $82,000, while also warning that dips back into the mid-to-high $70,000 range remained possible. He kept a $90,000 year-end target, but described the near-term path as far from a straight line up.
The recovery does not erase the pressures that drove the fall. United States spot Bitcoin exchange-traded funds recorded net outflows above $1 billion across two recent sessions, including $643.3 million on Friday 30 October, the largest single-day figure since June, and $398.6 million on Monday 2 November. Traders also cited the fallout from the record Binance hack in late October, which continues to weigh on confidence despite the exchange reopening withdrawals.
Technically, the market is now caught between two zones. Support is seen around $76,000 to $76,600, the area that gave way overnight and then held on the rebound, while resistance sits at $79,500 to $80,500, with $80,000 to $82,000 the broader barrier analysts are watching. A sustained move above that band would be needed to argue the correction is over; failure there would leave the downtrend intact.
Ether and the wider market followed a similar pattern, with Ether hovering around $2,240 to $2,300 and the crypto fear and greed index stuck at 34, still in fear territory, after falling as low as 26 the previous day. That combination of a price rebound with fearful sentiment is typical of a market that has stopped falling without yet convincing traders a new uptrend has begun.
Attention now turns to a run of economic data that could decide the next move. Traders are watching the United States October employment report due on 6 November and the October consumer price data due later in the month, both of which will shape expectations for interest rates. Markets currently price roughly a three-in-four chance of another Federal Reserve rate rise in December, a prospect that tends to weigh on risk assets.
For now, Bitcoin has proved it can bounce hard from below $76,000, but it has not yet proved it can stay above $78,000. Whether the V-shape becomes the start of a recovery or merely a pause inside a longer decline will likely be decided by whether ETF outflows slow and whether the price can reclaim the $80,000 zone in the coming sessions.
This post is market news information only, not financial advice.
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