Only three days away, the inauguration of Donald Trump as the next president of the United States is likely to have huge consequences for Bitcoin and the rest of the cryptocurrency industry. The Bitcoin price has already started to rally. How high can it go?
Bitcoin then
Monday will see the inauguration of President Trump and the potential for a new era pro-crypto policy. It does not seem long ago that the anti-crypto Biden administration, together with a harsh Securities and Exchange Commission (SEC) led by Chairman Gary Gensler, were trying to stifle the life out of this new and innovative industry.
Could it have been that it was the banking lobby that used all its influence to have its one and only competitor taken out of the picture? Or was it just that the government feared such a dynamic and disruptive force in the monetary system?
Bitcoin now
This is all in the past now. President Trump looks to have recognised that Bitcoin could be what starts to have a positive effect on the impossible pile of debt that confronts his country. It’s for this reason that a potential Bitcoin Strategic Reserve could be signed into effect by Trump when he takes office.
Although this is still far from certain, Trump’s appointments of pro-crypto members of his new administration in key positions is likely to lead to unimaginable tailwinds for Bitcoin and the crypto industry in general.
According to Polymarket, the odds of Trump signing a cryptocurrency executive order on day 1 are 52%, and the establishment of a US national Bitcoin reserve in 2025 is at 60%.
Bitcoin breaking out – back to all-time high?
Source: TradingView
The 8-hour chart for $BTC shows a breakout of the descending trendline. $102,000 is the last decent resistance. Therefore, if the bulls can force the price above this, the next stop could well be the all-time high at just above $108,000.
Bitcoin faces last resistance
Source: TradingView
The weekly chart for $BTC gives a perfect perspective on where the price is now, and where it can go. It can be seen that not only is $BTC at the small descending trendline, but it is also up against the huge 1.618 Fibonacci level taken for the whole of this bull market. A breakthrough here could mean an explosive move to come. In contrast, a rejection may see the price go back down to the major ascending trendline again.
Should the breakthrough occur, with confirmation above, the next big Fibonacci level at 2.618 is at $155,600. The 2.3 Fibonacci, another important Fibonacci level based on previous bull market tops, is at $138,600.
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.
