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Since our last report, the bulls appear to be pushing back the bears with the crypto’s price resurfacing above the 81900 level which acts as our first line of support on a technical basis. In this report, we aim to shed light on the possible factors aiding to the recent developments such as President Trump’s comments and the recent guidance by the SEC in combination with a technical analysis of Bitcoin’s daily chart.
Trump comments on Bitcoin
President Trump last Thursday per Fox News addressed the Blockwork Digital Asset Summit. The President being quoted by Fox News as having stated that he will make America “the undisputed Bitcoin superpower and the crypto capital of the world”. Moreover, President Trump stated that he would be ending the previous administration’s regulatory ‘war’ on crypto and Bitcoin.
The comments made by the President are a further indication of the current administration’s pro-crypto stance which could facilitate the expansion of the wider crypto industry in the US. Specifically, he stated that “You will unleash an explosion of economic growth, and with the dollar-backed stablecoins”.
Further implying that the Government may facilitate the expansion of the industry either by influencing regulation or by facilitating the expansion of cryptocurrencies into the mainstream financial system.
Overall, the comments made by President Trump may provide a boost to crypto prices and in particular bitcoin’s price as it showcases a willingness by the administration to facilitate the crypto industry and in particular bitcoin as seen by his aforementioned remarks.
SEC guidance of certain proof-of-work mining
The SEC released guidance last week on certain proof-of-work mining activities. The SEC in its statement noted that “It is the Division’s view that “Mining Activities” (defined in this statement) in connection with Protocol Mining, under the circumstances described in this statement.
Do not involve the offer and sale of securities within the meaning of Section 2(a)(1) of the Securities Act of 1933 (the “Securities Act”) and Section 3(a)(10) of the Securities Exchange Act of 1934 (the “Exchange Act”).[9]
Accordingly, it is the Division’s view that participants in Mining Activities do not need to register transactions with the Commission under the Securities Act or fall within one of the Securities Act’s exemptions from registration in connection with these Mining Activities.”
Essentially the SEC is stating here that crypto’s falling under the aforementioned are not considered securities, which could include Bitcoin. In turn the SEC’s guidance may be seen as a positive for cryptocurrencies such as Bitcoin which still uses Proof-of-Work and thus could aid the coin’s price.
Crypto Technical Analysis
BTC/USD Daily Chart
- Support: 81900 (S1), 73800 (S2), 65500 (S3)
- Resistance: 90950 (R1), 99500 (R2), 106700 (R3)
BTC/USD appears to be moving in a sideways fashion, after recovering above the 81900 (S1) support level. We would opt for a sideways bias for then coin’s price and supporting our case is the RSI indicator below our chart which currently registers a figure near 50 implying a neutral market sentiment.
However, we should note that an upwards moving trendline was incepted on the 11th of March which may imply that the coin may continue on it’s upwards trajectory.
Nonetheless, for our sideways bias to be maintained we would be required the coin’s price to remain confined between the 81900 (S1) support level and the 90950 (R1) resistance line. On the other hand for a bullish outlook we would require a clear break above the 90950 (R1) resistance line, with the next possible target for the bulls being the 99500 (R2) resistance level.
Lastly, for a bearish outlook we would require a clear break below the 81900 (S1) support level, with the next possible target for the bears being the 73800 (S2) support line.
Disclaimer:
This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.
Risk Warning:
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.
JA 
