Over the past three years, the US Securities and Exchange Commission has rejected several applications to create a Bitcoin Trading Fund (BTC). This dashed the hopes of many investors, who believed that the Bitcoin price would rise if the bank transfer was approved.
While investors no longer comment on the future of BTC regarding ETFs, regulators may eventually adjust their stance on cryptocurrencies in the future.
In an interview with Cointelegraph, US Securities and Exchange Commissioner, Hester Pearce, said the regulator needs to be able to adapt to innovation because many people from both the crypto space and traditional financial institutions are seeking advice.
Bloomberg’s latest cryptocurrency newsletter predicts that the Bitcoin ETF could see the light if Democratic presidential candidate Joe Biden is elected president of the United States. The author believes that the change in protection could clarify the regulations that could attract investment in digital assets.
However, even if President Donald Trump is re-elected, Bloomberg expects Bitcoin to remain optimistic during the second term, as digital assets will be supported by an increase in debt to GDP, quantitative easing, and the bitcoin hash rate.
Although Bitcoin is growing at twice the pace of 1,400% from 2016 to 2020, it will grow to $ 80,000 by 2024.
The long term outlook is encouraging, as are the short term charts. Let’s break down the top five digital currencies that can outperform in the short term.
Bitcoin / USD
The glow of the symmetrical triangle on October 8 attracted buyers, pushing the price above the $ 11,178 upper resistance on October 10th. However, the bears did not fully give in yet when they sold the rally for $ 11,482.44 on Sept.10.
The bulls used the fall to buy and kept the price from falling below $ 11,178. This indicates that the mood has changed from selling to buying and falling.
The moving average at the border of a bullish cross and the RSI above 64 indicate that the bulls are now leading.
If buyers manage to push the price above the $ 11,500 upper resistance, the next stop for BTC / USD could be $ 12,000 followed by $ 12,460.
This uptrend becomes invalid if the pair dips below the current level and breaks the 20-day exponential moving average ($ 10853). This move indicates that the current breach was an upward trap.
The direction on the 4-hour chart has turned bullish, the moving average is up, and the RSI is in the overbought territory. The buyers will again try to push the price above $ 11,500, and if they succeed, the advance is likely to increase.
However, if the price falls from the upper resistance, it may hold for a while in a narrow range between $ 11,468.98 and $ 11,178. A break below $ 11,178 would be a sign of short-term weakness.
XRP / USD
On October 10th, the bears defended general resistance at $ 0.26, but today they failed to contain selling pressure. This shows that the bulls are buying on every small dip and are currently trying to push XRP above $ 0.26.
A breakout and close (UTC) above $ 0.26 will complete the head and shoulders setup targeting the $ 0.300288 pattern. The moving average at the boundary of a bullish cross and the RSI near 60 indicates a bullish advantage.
Contrary to this assumption, if the XRP / USD pair falls below the current level and drops below the 20-day moving average ($ 0.246), it appears that the bears will actively sell on the rally to $ 0.26.
The bears try to defend the resistance towards $ 0.26, but fail to push the price below the 20-EMA. This indicates that the bulls are knocking after a fall.
The bullish moving averages and the RSI near 60 indicate that the bulls have a short-term advantage.
A break below the 20-EMA will be the first sign of weakness and the gains will shift in favor of the bears if they manage to push the price below $ 0.24 support.
On the contrary, if the bulls manage to push the price above $ 0.26, a new bullish trend is likely to emerge. The pair may encounter resistance at $ 0.266, followed by $ 0.28, but the trend will continue as long as the price remains above the neckline.