Crypto Outlook: 90k per BTC

Since our last report, the bullish momentum driving Bitcoin’s price appears to be increasing.  Crypto bulls appear to be in control of the coin’s price following the US Presidential elections which saw a Republican sweep. In this report, we aim to shed light on the possible factors aiding to the recent developments in combination with a technical analysis of Bitcoin.  

Crypto: Overview Report

Republican trifecta boosts Crypto optimism

Since our last report, Donald J Trump has won the US Presidential elections and now holds the title of President-Elect and is set to be sworn into office in January 2025. The 47    President of the United States of America has notoriously been pro-crypto during his campaign as he aimed to garner the support of the crypto community in the US.

Moreover, since the US Presidential elections, we can now say that the Republican party has secured a trifecta, by controlling the House of Representatives, Senate and the Office of the Presidency, which in theory would allow the President-elect to pass legislation through, with little to no resistance from the legislative body. In turn, the possibility of pro-crypto legislation being passed through all stages of the government appears to have aided the crypto-markets and in particular bitcoin, which has skyrocketed and is now currently hovering near the 90k per coin mark.

In conclusion, should pro-crypto legislation be introduced in Congress with the new administration, we may see market optimism aiding the crypto-markets and  in particular the price of Bitcoin given its status as the “King of Crypto”. Whereas, should we see a lack of material progress being made in passing crypto-friendly legislation through the House and Senate, it may weigh on the price of Bitcoin.

Brad Garlinghouse x Trump combo?

XRP has surged to above $1 per coin, following a flurry of positive market sentiment in the past week. In particular, there are certain claims that Ripple CEO Brad Garlinghouse, which is the company that created XRP, has met with President-elect Trump leading to many crypto enthusiasts speculating as to the potential role that XRP may take on in the traditional financial system under the Trump administration.

Moreover, the speculation that the meeting took place, further intensified after Ripple’s CEO appeared on a Fox segment, which he was asked about the hypothetical meeting and did not clearly answer, leading to the interviewer insinuating that the decision to neither confirm nor deny the meeting, was an admission in itself that the meeting took place per some pro crypto media outlets.

Nevertheless, the positive news surrounding the cryptocurrency did not stop there, as over the past week, SEC Chair Gensler, implied that he would be stepping down as SEC Chair, in a move that has further spurred market optimism in the crypto industry, as the SEC under Gensler had developed a reputation of regulating by enforcement and was seen by many as an overreach of the SEC’s authorities.

Moreover, Ripple Labs faced a lengthy battle with the SEC in which they eventually declared victory and thus Gensler stepping aside appears to have further enhanced the positive market optimism surrounding the coin which in turn may have aided its price.

Department of Government Efficiency aka “DOGE”

Part of the incoming’s administrations ambitions is to reduce unnecessary spending in the Government, which according to President-elect Trump form announcing the formation of a new government agency which is called the “Department of Government Efficiency” aka ‘DOGE’ which will be led by Elon Musk and Vivek Ramaswamy. Given the acronym, crypto-enthusiasts have been quick to link the newly formed agency with the crypto-currency “DOGE” which in turn may have aided the coin’s price over the past week.

Crypto Technical Analysis

BTC/USD Daily Chart

• Support: 86550 (S1), 79690 (S2), 72470 (S3) 
• Resistance: 93300 (R1), 100000 (R2), 105500 (R3)  

BTC/USD appears to be moving in an overall upward fashion but appears to have stabilized near the 90k per coin figure. We opt for bullish outlook for the coin’s price and supporting our case is the RSI indicator below our chart which currently registers a figure above 70, implying a strong bullish market sentiment.

Yet at the same time the reading above 70 could also imply that the coin is currently overbought and may be due correction to lower ground. Nonetheless, for our bullish outlook to continue, we would require a clear break above the 93300 (R1) resistance level, with the next possible target for the bulls being the 100,000 (R2) resistance line.

On the flip side for a sideways bias we would require the coin to remain confined between the 86550 (S1) support level and the 93330 (R1) resistance level. Lastly, for a bearish outlook we would require a clear break below the 86550 (S1) support line with the next possible target for the bears being the 79690 (S2) support level

免責事項：
本情報は、投資助言や投資推奨ではなく、マーケティングの一環として提供されています。IronFXは、ここで参照またはリンクされている第三者によって提供されたいかなるデータまたは情報に対しても責任を負いません。

リスクに関する警告：

Crypto CFDs are an extremely high-risk, speculative investment and you may lose all your invested capital. Before trading, you need to ensure you fully understand the risks involved taking into consideration your level of experience and investment objectives. Seek independent advice, if necessary.