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As the market pauses to catch its breath, the $BTC price is currently consolidating around the $75,000 price level. With a marked positive change towards Bitcoin about to be implemented, as the new Trump administration begins its tenure in January, could $BTC surge into the end of the year?
Everything changes for Bitcoin
What a difference an election day makes. Not many hours after the polls closed in the U.S. election, the future for Bitcoin became immeasurably better. The Trump win takes Bitcoin and crypto out of all the perils that an unfriendly U.S. administration was inflicting, and now this disruptive technology can have its chance to improve money.
On the regulatory front, things couldn’t be much better. Trump has promised to fire hugely unpopular SEC chairman Gary Gensler on the first day that he takes office. Other measures are also promised that will potentially put Operation Chokepoint 2.0 into the garbage can of history.
In addition, pro-crypto Senator Cynthia Lummis has already announced her intention to develop legislation which will require the U.S. government to start building a strategic Bitcoin reserve. Should the legislation be successful, this will bring the full weight of the United States government firmly behind Bitcoin, which also has the potential to start a game theory $BTC acquisition race among sovereign states.
The U.S. Spot Bitcoin ETFs have begun to buy again, as nearly $9K BTC was purchased among the funds on Wednesday. With Bitcoin having well and truly escaped from its bull flag, and having entered price discovery, the ETF funds are very likely to continue the heavy buying.
Retracement, or continuance of upside momentum?
Source: TradingView
The 4-hour time frame shows how $BTC has risen to the top of the ascending channel. It might be expected that some kind of a retrace would take place from here. Looking at the Fibonacci retracement levels, this next potential reversal could even come all the way down to the deepest 0.786 Fibonacci level. This would also make sense, given that this coincides with the top of the 2021 bull market, and would be a perfectly healthy retest of this level before confirming a higher low and heading back up again.
However, Wednesday’s more than $7,000 surge has taken the $BTC price well away from the top of the bull flag, and with this current momentum, it could also be expected that this price surge either continues, or at the very least a shallower consolidation takes place before the price heads higher again. If the direction is to the upside, and the $BTC price is able to hold above the ascending channel, this would add a lot of bullishness going forward.
$BTC cup and handle pattern?
Source: TradingView
The macro for Bitcoin is looking decidedly positive. All the small breakthroughs on the micro scale have been feeding through into the macro picture. So in the monthly time frame, it can be noted how the $BTC price is beginning to power away from the top of the bull flag.
The above setup could even be seen as a cup and handle chart pattern. If this were to play out, the measured move would take Bitcoin to around $130,000, which is a lot more than the measured move of $102,000 for the pole of the bull flag.
Macro momentum indicators turning bullish
The impetus that could take the $BTC price to these potential price levels is likely to come from the Stochastic RSI and the Relative Strength Index.
The Stochastic RSI indicators have crossed back up, bouncing off of the 50.00 level, signalling huge positive price momentum. While the Relative Strength Index is approaching a descending trendline that goes all the way back to early 2021. If the indicator can break though this trendline, this would also be remarkably bullish.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
