Crypto Outlook: BTC rallies

Since our last report, the bullish momentum driving Bitcoin’s price appears to be increasing.  Crypto bulls seem to have regained control over the coin’s direction. 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

Change of tone from the Democratic Presidential Nominee? 

In a surprise turn of events, Vice President and Democratic Presidential Nominee Kamala Harris according to Bloomberg, stated that ~we will encourage innovative technologies like AI and digital assets while protecting consumers and investors. We will create a safe business environment with consistent and transparent rules of the road”. The comments by Harris appear to be an attempt to appeal to the crypto crowd, similar to Former Presidents Trump’s visit to a local establishment in NYC in which he purchased burgers using bitcoin.

Overall, it would appear that the applications of cryptocurrencies and Bitcoin in particular, seem to have taken root in potential voters and that is now being seen by Politicians from both side of the isle who may be attempting to court this voter base as the US Presidential election heats up. In contract to our last report, both candidates now appear to have “pro-crypto” agendas and thus cryptocurrencies and in particular Bitcoin may benefit following the US Presidential elections, regardless of which candidate eventually makes their way to the White House.

In conclusion, the possibility of a pro cryptocurrency President in the White House, regardless of political affiliation may boost market optimism for Bitcoin’s price and thus may support the coin’s price in the long run, should more crypto-friendly politicians emerge. Yet a failure to see a transition towards a legislative agenda that has the votes to pass into law, may weigh on Bitcoin’s price. 

Bitcoin sees inflows following Fed rate cut

According to a report by CoinShares, cryptocurrencies have experienced substantial inflows, following the Fed’s decision last week to cut interest rates by 50bp. According to the report, inflows to cryptocurrencies totaled roughly $321 million, with Bitcoin receiving the majority of the inflows at $284 million. The increase of inflows into cryptocurrencies may imply that with financial conditions easing in the US economy, investors may be re-directing funds to more riskier “assets” which in turn may have aided Bitcoin’s price. 

XRP in the spotlight 

According to a report by CoinDesk, Grayscale is launching an XRP trust which could pave the way for a spot XRP ETF in the US. The ETF comes as Ripple Labs, the creators behind the coin “XRP” declared “victory” against the SEC after a widely publicized court case against the SEC went in their favour. Nonetheless, the implications of an ETF could boost market optimism for the coin and in turn could aid its price. 

Crypto Technical Analysis

BTC/USD Daily Chart

• Support: 61100(S1), 56600 (S2), 52455 (S3) 
• Resistance: 65300(R1), 69300 (R2), 73280 (R3)  

BTC/USD appears to be moving in a upwards fashion. We opt for a bullish outlook for the coin and supporting our case is the RSI indicator below our chart which currently registers a figure above 60, implying a bullish market sentiment. Moreover, we would also like to note the upwards moving trendline which was incepted on the 7^. of September, which may further support our aforementioned bias.

For our bullish outlook to continue, we would require a clear break above the 65300 (R1) resistance line, with the next possible target for the bulls being the 69300 (R2) resistance level. On the flip side for  a sideways bias we would require the coin’s price to remain confined between the 61100 (S1) support line and the 65300 (R1) resistance level. Lastly, for a bearish outlook we would require a clear break below the 61100 (S1) support level with the next possible target for the bears being the 56600 (S2) support line.

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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.

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