Crypto Daily - Bitcoin ($BTC) hit an all-time high of $93,500 on Wednesday. With heavy net inflows a daily occurrence just from the U.S. Spot Bitcoin ETFs alone, it would only seem a matter of time before $BTC achieves the magic high of $100,000.
Incoming U.S. administration is pro-Bitcoin
Everything appears to be moving into place for Bitcoin. For the very first time, what is predicted to be a crypto-friendly administration is only a couple of months or so from taking the reins in the United States.Out with the old, and in with the new. Sworn enemies of crypto such as Gary Gensler, chairman of the SEC, together with the current democratic administration in the main, are all going to be swept aside by an incoming republican administration that appears to recognise the importance of encouraging the innovation of Bitcoin and the more promising parts of the crypto industry.
Uncertain economic outlook favours Bitcoin
So while the political outlook is looking favourable, what about the financial outlook? From an economic perspective, things are still looking decidedly shaky. The U.S. CPI data was recently released and this records a slight rise in inflation, which is bad news for the Federal Reserve as it may have to rethink what was potentially going to be another rate cut in the final FOMC meeting of the year in December.In addition, U.S. government bond yields have been climbing, despite the recent rate cuts. With this action, the market is giving its view that it only wants to hold U.S. bonds if the government pays an increasing dividend for what is now perceived as a more risky venture.
Happily for Bitcoin, this asset is outside of government control, and is therefore becoming a safe hedge in what is becoming a far more uncertain financial environment. Not just in the US, but worldwide.
Blackrock (NYSE:BLK) IBIT ETF pulls in $3 billion in $BTC in only 5 trading days
It is probably for this reason that the U.S. Spot Bitcoin ETFs are still buying very large amounts of $BTC. $509.4 million was syphoned out of the market by the ETFs on Wednesday. As usual, the Blackrock IBIT ETF is the main buyer. This ETF has purchased more than $3 billion in only the last five trading days.Bitcoin uptrend continues
Source: TradingView
The short-term time frame for Bitcoin shows that the price is continuing in an uptrend. A small bull flag did develop on Wednesday, and the price duly shot out the top. That said, the price then came back down to test the top of the bull flag, as well as the ascending trendline.
To add to these supports, the slightly ascending line in the chart above is a trendline drawn through both tops of the previous 2021 bull market. The $BTC price has retested this trendline, which is now likely to act as very strong support going forward.
Bearish divergence a possible concern
Source: TradingView
The weekly chart for $BTC demonstrates how the ascending trendline has been surpassed. Of course, a weekly close will need to take place above the trendline in order for it to officially become support. If this happens, it will likely be onwards and upwards.
Looking at the Relative Strength Index (RSI) at the bottom of the chart, it can be observed that the indicator is trending vigorously to the upside. This will need to continue, given that the previous high for this indicator at 88.00 will need to be improved upon. If the indicator turns back down before achieving a higher high, this would leave a very nasty bearish divergence in play, and potentially an end to the bull market.
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.