Crypto Outlook: BTC’s bulls in control?

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

Trump backed coin to go public

According to various crypto media outlets, Trump-supported World Liberty Financial will start its public token this week. World Liberty Financial, is a nascent decentralized finance (DeFi) protocol supported by Donald Trump and his family.

The company announced plans to start selling tokens on Tuesday the 15th of October. According to a report by CoinDesk the project aims to raise $300 million from the token sales at a valuation of $1.5 billion and the coin would serve as a governance token which in turn would allow users to vote on initiatives about the protocol’s development.

Given the rising popularity of the Crypto crowd vote amongst the two US Presidential nominees, should the launch be a success, it may spur market optimism in the general crypto market and thus could potentially lead to widespread support of crypto-coins and in particular Bitcoin given its significance in the industry, could benefit. On the flip side, the announcement may only benefit the particular crypto-coin, as the positive momentum surrounding former President Trump may be limited to World Liberty Financial.

HBO documentary names Peter Todd as “Satoshi”

A recent documentary released by HBO, called “Money Electric” has named the infamous Satoshi as Peter Todd the Canadian crypto expert and software developer. According to reports, Todd joined Bitcoin’s development project as a programmer in 2013 but was never seriously considered as “Satoshi”.

The allegations by HBO may have had severe market implications had the crypto-community unanimously accepted HBO’s claims, yet that does not appear to be the case currently. Moreover, Peter Todd has publicly denied the allegations made by HBO and has according to Bloomberg, called Cullen Holback’s film a “threadbare, circumstantial, coincidence approach to trying to find Satoshi” and has raised concerns about his safety as he may be inadvertently targeted due to the $62 billion worth of Bitcoin in Satoshi’s wallets.

Nonetheless, the lack of widespread agreement that Peter Todd is Satoshi as claimed by the HBO documentary, appears to have not resulted in widespread concerns that Satoshi’s wallets might be liquidated.

Australia’s first ETH spot ETF to go live tomorrow

According to recent report, Australia’s first Ethereum ETF is set to go live tomorrow. The Ether ETF in question is the Monochrome Ethereum ETF, which follows the crypto investment firm’s first spot BTC ETF which went live in August.

The company’s Ether ETF is set to go live at 10:00 am local time and will allow both cash and in-kind applications and redemptions to investors, which may mean that investors will be able to buy into and cash out of the fund using Ethereum. Hence, the announcement of the Ether ETF may aid Ethereum’s price as crypto-based ETFs appear to be gaining traction around the globe and may open the door for further investors into the market. In turn, the possibility of an increase in demand for Ethereum could potentially aid the cryptocurrency’s price.

Yet, we should note that the Australian investment market is not as prestigious as the American and European markets and thus the positive implications may not lead to a substantial increase in the coin’s price. Nonetheless, the further mainstream adoption of crypto-based ETFs could provide long-term support in the crypto markets.

Crypto Technical Analysis

BTC/USD Daily Chart

• Support: 60400 (S1), 56600 (S2), 52455 (S3)
• Resistance: 65300 (R1), 69300 (R2), 73280 (R3)

BTC/USD appears to be moving in an upwards despite having temporarily broken below our 60400 (S1) support level and now appears to be taking aim for our 65300 (R1) resistance line. We now opt for a bullish outlook for the coin and supporting our case is the 50 moving-average line which has crossed above the 100 moving-average line, effectively forming a golden cross which may imply long-term bullish tendencies for the coin.

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 60400 (S1) support level and the 65300 (R1) resistance line. Lastly, for a bearish outlook, we would require a clear break below the 60400 (S1) support level with the next possible target for the bears being the 56600 (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.

Amaran Risiko:

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.