Crypto Outlook: Trump inauguration day

Since our last report, the bullish momentum driving Bitcoin’s price appears to be increasing with Trump’s inauguration only hours away.  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.

Trump inauguration today

Trump’s inauguration is set to occur today. The President-elect is set to officially take over as the 47  President of the United States of America, and with the incoming President having been perceived as a defendant of crypto-currencies, market participants may be eagerly awaiting to see if the incoming administration will promote pro-crypto rhetoric into actual legislation.

In turn, should the President’s administration announce or support pro-crypto-legislation in the near future following the inauguration, it could aid the crypto-markets in general and in particular the price of Bitcoin. However, should pro-crypto legislation fail to garner the appropriate support in both Houses or by the incoming President, there may not be an effect in the wider crypto markets.

Ethereum Foundation undergoes restructuring

According to a report by CoinTelegraph, Vitalik has announced leadership changes in the Ethereum foundation. Vitalik in an “X” post stated that the restructuring in attempt to achieve certain goals, which include the improvement of technical expertise within the EF leadership and to start aggressively lobbying regulators and powerful political figures. The lobbying by the EF to regulators and political figures may be in an attempt to garner pro-crypto regulation which may favour ETH, and thus could aid the coin’s price.

SEC Gensler resigns today

SEC Chair Gensler is expected to resign today. On the 14  of January, SEC Gensler gave his farewell interview on CBNC, marking the end of his tenure. SEC Chair Gensler has been in the spotlight of the crypto community and in particular, his methods of regulating by enforcement which have garnered significant pushback from the crypto community.

In particular, Gensler has faced significant pushback over the SEC’s handling of the case against Ripple, which has been categorized as some as an overreach by the SEC. Therefore, Gensler’s removal has been hailed by pro-crypto enthusiasts and in particular XRP holders, which blame the SEC’s decision to regulate by enforcement against Ripple which is the company behind the aforementioned coin “XRP”.

In conclusion, the coin ‘XRP’ may gain as the new SEC commissioner may be more open to providing a clear regulatory framework for the crypto-industry as a whole, with some having implied that the new SEC Chair may bring an end on the crypto crackdown which his predecessor embarked on. In turn this could aid the prices of cryptocurrencies and in particular that of Bitcoin.

Crypto Technical Analysis

BTC/USD Daily Chart

• Support: 99500 (S1), 92000 (S2), 85400 (S3)
• Resistance: 109300 (R1), 115000 (R2), 121000 (R3)

BTC/USD appears to be moving in an upwards fashion, the coin currently taking aim for our 109300 (R1) resistance level. We opt for a bullish outlook for the coin’s price and supporting our case is the RSI indicator below our chart which currently registers a figure near 70, implying a strong bullish market sentiment.

For our bullish outlook to continue, we would require a clear break above the 109300 (R1) resistance line, with the next possible target for the bulls being the 115000 (R2) resistance level.

On the flip side for a sideways bias we would require the coin’s price to remain confined between the 99500 (S1) support level and the 109300 (R1) resistance line. Lastly for a bearish outlook we would require a clear break below the 99500 (S1) support level, with the next possible target for the bears being the 92000 (S2) support line.

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هشدار خطر:

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