Move Over Bitcoin: Meet the First Crypto First Family
Bitcoin Peaks at $109K as RSI Divergence Emerges
Bitcoin started the week with a fresh new All-Time High (ATH) at $109.356, breaking the previous record by about 1,000 bucks and retreating quickly afterward. Comparing the two recent peaks, Bitcoin is now showing a bearish divergence: the RSI is lower at the current ATH than it was in mid-December at the previous ATH.
The crypto market, and especially Bitcoin, had a lukewarm reaction to Donald Trump’s actions since his inauguration. The pro-crypto policy was not as aggressive as some thought it would be but he’s been in office for just a few days. Some of the promises made are taking a longer time to materialize but it doesn’t look like Trump is going back on his word.
One of the high points of his presidency thus far has been an executive order titled Strengthening American Leadership in Digital Financial Technology. The order was signed this Thursday and establishes a crypto working task force that is supposed to deliver recommendations on crypto regulatory changes until July.
The working group will also have to make recommendations regarding the creation of a potential national crypto reserve. The executive order also put a stop to the creation of a U.S. central bank cryptocurrency, which was apparently in development.
$TRUMP & $MELANIA
In line with his pro-crypto stance, on January 17, President Trump launched his own meme coin named $TRUMP three days before his inauguration as the 47th American President. The coin traded at $7 at opening, reached a high of $75, and is currently trading at $35.
Two days after the launch of $TRUMP, Trump’s wife Melania launched her own coin, named $MELANIA. We can safely say they are the first Crypto First Family.
Some have raised concerns regarding a possible conflict of interest, which is not so farfetched if you think of it. After all, an openly pro-crypto president could influence the price of the crypto coins that bear his and his wife’s name.
Chart Analysis – BTC/USD
The last few days have been back and forth for the crypto king and although it printed a new ATH, the price action points towards a ranging period. The two highs at $108K and $109K almost create a double top, which is a bearish pattern but Bitcoin received a fresh impulse from Trump’s executive order.
Basically, we have signs that point south and signs that point north. Combine this with a possibly overextended market and we may get some herky-jerky movement.
The levels to watch are $102,600 and $100,000 as support, while resistance sits at the ATH, followed closely by the strong $110,000 barrier.
