Bitcoin price continues to decline as the Trump-driven cryptocurrency market sentiment cools down. The crypto market has lost $500 billion in capitalization in the last seven days, underlined by Bitcoin’s slide back to five-figure price. BTC price was at $95,302 at the time of writing, having gained 0.2% on the daily chart.
The momentum on Bitcoin price signals exhaustion of its upside. The coin has recently broken below a long-term ascending channel, and trades are below a key support level, as previously discussed here. Also, it is below the Volume Weighted Moving Average (VWMA) at $99,113, adding credence to the downward sentiment.
Trump appointed crypto advocate Stephen Miran to head the Council of Economic Advisors (CEA), affirming his pro-crypto policies. However, most traders have already booked profits on his November 5 electoral victory, which has slowed down Bitcoin’s upside in recent days.
The biggest move by the Trump administration would be the much-talked-about establishment of a strategic Bitcoin Federal Reserve. Such a move would likely be an uphill task and could take a long time to implement, but the first hint at initiating it could skyrocket Bitcoin prices.
The establishment of a BTC Federal Reserve would almost certainly drive other central banks across the world to establish similar reserves. As of now, China and the United Arab Emirates (UAE) are believed to hold significant amounts of BTC coins. In the meantime, the institutional adoption of Bitcoin as a payment method will likely grow in the new year, if only Bitcoin price maintains relative stability above the $90K mark.
On the Bitcoin price chart below, the coin pivots at $96,100 and the downside will prevail if the price resistance stays above that level. With the sellers in control, BTCUSD will likely find the first support at $94,600. Also, a stronger downward momentum will break below that level and potentially test $92,590.
On the other hand, breaking above 96,000 will shift the momentum to the upside. With the buyers in control, BTC price will likely meet the first resistance at $97,360. Breaking above that level will invalidate the upside narrative. Also, a stronger upside momentum could break above that level and test $99,100.
This post was last modified on Dec 23, 2024, 08:47 GMT 08:47