Bitcoin and the Crypto Market experience a new Post-Election High

Week of November 12-18, 2024

Cynthia Lummis, a Republican Senator, has confirmed her plan to push for the United States to establish a strategic Bitcoin (BTC) reserve, following the likelihood that the Republican Party will gain a majority in the Senate by 2025. This increase in Republican power would enhance the chances of passing this legislation.

Geoff Kendrick, an analyst from Standard Chartered Bank, predicts that the price of Bitcoin will surge to $100,000 before December 27th, which marks the expiry of certain Bitcoin options. Additionally, by January 20, 2025, the day Donald Trump is sworn in as President of the United States, the price of Bitcoin is speculated to reach up to $125,000.

BlackRock's Spot Bitcoin ETF or iShares Bitcoin Trust (IBIT) has surpassed $33 billion in net assets as of November 8, outpacing the iShares Gold Trust (IAU), which invests in gold. Despite being the latter being established in 2005, IBIT has reached this milestone in just 10 months.

BlackRock revealed that on November 8, there was a significant inflow into its Spot Ethereum ETF, with $60.3 million in new investments, marking the highest inflow in 94 days. Other Spot Ethereum ETFs also saw continued inflows following Donald Trump's victory in the election.

The U.S. Securities and Exchange Commission (SEC) is currently reviewing applications for the establishment of a Spot Ethereum ETF that would use derivative options for trading, filed by Bitwise and Grayscale. If approved, these ETFs would be listed for trading on the NYSE (New York Stock Exchange).

Technical Analysis

Bitcoin (BTC)

Bitcoin (BTC) has been rising sharply, reaching a new all-time high and hitting the target resistance at $88,000. This trend may enter a correction phase as the RSI (Relative Strength Index) has entered an overbought range. A key support level is seen at $77,000, which could be a good entry point. The momentum still shows potential to continue upward, so look for buying opportunities when the price pulls back.

• Support: 2,600,000 THB / 77,000 USD
• Resistance: 3,100,000 THB / 88,000 USD
  

Ethereum (ETH)

Ethereum (ETH) has also surged and successfully broken out of its sideways slumber, confirming a full bullish reversal. The first resistance level is at the $3,500 mark. However, if a pullback occurs first, support is expected around $2,800, which could be an ideal entry point. The overall momentum remains bullish and is likely to continue upward.

• Support: 96,000 THB / 2,800 USD
• Resistance: 120,000 THB / 3,500 USD

Moo Deng (MOODENG)

Moo Deng (MOODENG) posted 166.82% returns last week. Given the strong price surge, a pullback may be imminent. Key support is expected at the $0.33 mark. If the price falls below this level, watch for a potential bearish reversal. The target resistance is at the previous high of $0.55.

• Support: 9 THB / 0.33 USD
• Resistance: 17 THB / 0.55 USD

Cardano (ADA)

Cardano (ADA) achieved impressive 89.36% returns last week. The overall trend is pointing towards a bullish phase. Look for buying opportunities if the price pulls back to the $0.55 level. If this support holds, the first target resistance is at $0.70.

• Support: 19 THB / 0.55 USD
• Resistance: 24 THB / 0.70 USD

Investment Trends

Bitcoin (BTC) has surged to new highs following Donald Trump's victory in the U.S. presidential election, which has also led to significant price gains in altcoins. There is a strong likelihood that the overall trend will shift towards a bullish phase.

Bitcoin's price is expected to continue its rise throughout November before experiencing a correction in December. However, this could be seen as a potential buying opportunity, as the market is likely to maintain its positive momentum until the U.S. presidential inauguration in late January 2025.

If Bitcoin's price stabilizes and the Bitcoin Dominance Index remains steady at around 60%, an altcoin season may occur, driven by purchases of altcoins that have experienced significant declines over the past two years. This period presents a good opportunity to accumulate fundamentally strong altcoins.

On Wednesday, November 13, 2024, the U.S. inflation data will be released. The figure is expected to remain at 3.3%, the same as the previous month. Additionally, on Thursday, November 14, the Chair of the U.S. Federal Reserve (Fed) is scheduled to speak about the U.S. economic outlook.

While the market will be focused on inflation and the Fed's decisions on interest rate cuts, there is a possibility that inflation under Donald Trump's administration could rise due to economic stimulus policies, which may delay further interest rate cuts.

References

• https://cointelegraph.com/news/cynthia-lummis-donald-trump-bitcoin-reserve
• https://www.theblock.co/post/325319/as-bitcoin-hits-80000-standard-chartered-calls-new-solana-peak-inevitable-by-years-end 
• https://cointelegraph.com/news/blackrock-bitcoin-etf-flips-gold-fund 
• https://cointelegraph.com/news/blackrock-ether-etf-inflows-significant-eth-price-united-states 
• https://cointelegraph.com/news/sec-delays-ethereum-etf-options-decision-once-more 

Disclaimers

• Cryptocurrencies and digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to their own risk profile.
• Past returns or performance of digital assets do not guarantee future returns or performance. 

Remark: views, information, knowledge, and opinions are considered as content that come from individuals involved. They do not constitute an expression of Bitazza and its employees. Neither the email nor the content presented constitute investment advice.