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Make Crypto Great Again: Bitcoin Supporter Named as White House Chief of Staff

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  • Thomas Hughes
    📈 Price Predictions

    President Donald J. Trump announced that Mick Mulvaney will become the new acting Chief of Staff for the White House

Make Crypto Great Again: Bitcoin Supporter Named as White House Chief of Staff
Cover image via u.today

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

President Donald J. Trump announced that Mick Mulvaney will become the new acting Chief of Staff for the White House. He is currently the director of the Office of Management and Budget and will assume the new position by the end of the year, but apparently, he will keep his current position as well.

Mulvaney, who is a known proponent of Bitcoin and blockchain in general, has said in the past that “[b]lockchain technology has the potential to revolutionize the financial services industry, the U.S. economy and the delivery of government services”. Good news? Sounds like it!

Chart Analysis – BTC/USD

BTC/USD chart

After dipping below the $3300-mark, Bitcoin made a nice recovery, breaking the bearish trend line and shooting higher as I am writing this. It must be noted that the current 4-hour candle is not yet closed, so we could see the price drop by closing time. However, this is the first strong push north in quite a while, and it will most likely be an event that sparks further upside.

Currently, the pair has bounced lower after touching the 3600-mark and is trading at 3500. If the bulls can sustain a price above this level, it will be a major victory and will make 3700 the next short-term target. Moreover, Bitcoin above $3500 will generate a wave of buying, created by technical reasons but also by the metaphorical FOMO.

Support zone: 3300 (confirmed support) and possibly the 50 EMA

Resistance zone: 3600 - 3700

Most likely scenario: sustained climb into 3700

Alternate scenario: break below the 50 EMA

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About the author

Thomas Hughes is an executive editor of U.Today. He is a skilled cryptocurrency trader and technical analyst deeply immersed into the cryptocurrency & blockchain technology area.

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Why China Fever on Bitcoin is Already Dropping After 1 Month of Blockchain Optimism

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  • Joseph Young
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    The so-called “China fever” on crypto like bitcoin has noticeably declined since President Xi’s speech on October 28.

Why China Fever on Bitcoin is Already Dropping After 1 Month of Blockchain Optimism
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Contents

Since Chinese President Xi Jinping expressed his support for blockchain technology on October 28, the so-called “China fever” on crypto like bitcoin has noticeably declined.

The price of bitcoin fell from around $10,600 to $8,500 and cryptocurrencies that are known have Chinese development teams such as NEO, Ontology, and TRON have slightly increased over the past three weeks, but not enough to be described as a speculative mania.

Why demand for bitcoin and other cryptocurrencies is not on the rise

Following the newly established vision of the Chinese government to push the development of blockchain technology, expectations for strengthened momentum of the cryptocurrency market rapidly increased.

Initially, such expectations combined preceded an abrupt overnight increase in the price of bitcoin to above a key “psychological level” at $10,000, but the price fell back to “pre-Xi” levels in a relatively short period.

Global markets analyst Alex Krüger said:
“Have mainland China investors increased their demand for bitcoin? BTC volumes quickly dropped back to pre Xi news levels; online searches in China are back down to pre Xi news levels; website traffic for exchanges catering to China barely changed since the news.

The ‘Chinese tokens,’ NEO, ONT and TRX, have all done well since the aftermath of the news, while VET (a supply chain oriented blockchain) has been cruising on China news. Don't think though this is a sign of a ‘speculative fever’ of any kind.”

The analyst emphasized that prior to the statement of President Xi on the focus of China to facilitate the development and implementation of blockchain technology, the penetration of cryptocurrencies in the region was already high.

Also, most mainland Chinese cryptocurrency investors are said to have been trading digital assets through overseas markets like Hong Kong, purchasing stablecoins like Tether with the Hong Kong dollar.

Hence, it is possible that the public already anticipated the government of China to eventually reiterate its plans to encourage blockchain development with the People’s Bank of China (PBoC) consistently stating that its plans for a state-operated digital currency is in the works.

“It is without doubt that with the announcement of Libra, governments, regulators and central banks around the world have had to expedite their plans and approach to digital assets,” Dave Chapman, BC Technology Group executive director, said.

Is this the end of the Xi-effect?

Some technical analysts have suggested that the upside movement of bitcoin to $10,600 in late October may have not been primarily fueled by the optimism around China’s blockchain development initiative, and that a cascade of short liquidations amidst a build up of sell pressure caused the rally.

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About the author

Joseph Young is an analyst based in South Korea that has been covering finance, fintech, and cryptocurrency since 2013. He has worked with various recognized publications in both the finance and cryptocurrency industries.

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