Bitcoin price retested the psychological round figure level of $76k on Thursday supported by the excitement surrounding Donald Trump’s election win. However, the crypto coin soon declined below that mark and traded at $74,864 at the time of writing, down by 1 percent from its position a day earlier. However, the current market sentiment favours a continuation of the uptrend.
Many crypto investors are hopeful that the incoming administration in the US will institute significant changes at the Securities and Exchange Commission (SEC), which could bring greater integration of digital assets in the mainstream financial system.
Bitcoin’s 2020-2021 rally happened when most governments had not set in place regulatory frameworks for digital assets. That has since changed, with many nations opting to streamline their integration of the assets into their economies.
However, in the United States, the SEC has often appeared high-handed in its approach towards cryptos. In particular, the regulator has lodged multiple cases against crypto exchanges, investment fims and token issuers. Three ETF approvals featuring, XRP, Solana and Litecoin are currently pending approval, and eyes are particularly on XRP.
If the SEC approves all three, it could be interpreted as a sign of the softening of the SEC in readiness for a probable transition. That could inject fresh volatility into the market. There has been talk of a potential six-figure BTC price in the medium-term, but that will depend on optimism surrounding the US economy. Cryptocurrencies are high-risk assets, and investors are typically attracted to them when the economy is doing well.
Bitcoin price pivots at 74,704, and the buyers will be in control if action stays above that level. The first resistance is likely to come at 75,731, but if the buyers extend their control, the BTCUSD pair could break above that level to test 76,478.
On the downside, moving below 74,704 will favour the sellers to be in control. That could see initial support coming at 73,836. Also, if the downward momentum strengthens, Bitcoin price could break below that level, invalidate the upside narrative and test 72,950.
This post was last modified on Nov 07, 2024, 11:47 GMT 11:47