BTC/USD outlook: Cracks 100K barrier as sentiment brightens
BTC/USD – quick rebound after recent strong downside rejection at key 90K support zone, probed through psychological 100K barrier, signaling that bulls are back to play.
The sentiment improved on news that incoming Trump’s administration will start overhauling US SEC cryptocurrency policies as soon as they take power next week.
Top Republican officials at the Securities and Exchange Commission will work on rules that will clarify when the cryptocurrency become a security, as well as work on ending a crypto crackdown lead by former SEC chair from the Democrat party.
Dynamic of works of new officials will directly reflect on crypto’s price action, with brightening outlook expected to continue to inflate the price.
Meanwhile, fresh bulls may show further hesitation at 100K barrier (reinforced by the top of thick daily Ichimoku cloud), as the price repeatedly fails to sustain gains above this barrier.
Partial profit taking in this zone (also due to overbought conditions on daily chart) would push the price lower, but dips are likely to be limited and mark positioning for final push higher.
Initial supports lay at 98300/98100 zone (10-period MA on 4-hr chart / Fibo 23.6% of 89039/100924 recovery leg), followed by 97570 (200-period MA on 4-hr chart), with extended dips not to exceed 96500 support zone.
Firm break of 100K to open way for test of 102770 (Jan 7 lower top) and unmask target at 103830 (Fibo 76.4% of 108400/89038).
Res: 100100; 102730; 103830; 104030.
Sup: 98300; 98100; 97570; 96400.
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
