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By: Tom Gentile
on November 20th, 2024
President Trumps Win is Good for Bitcoin
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Going in to the 2024 Presidential election I have produced written and video education on what sectors and stocks within those sectors would benefit in either a Trump or a Harris win.
I’ve done the same with providing education on what sectors and stocks within those sectors would do well regardless of who wins the election.
If you want to check out the three stocks I highlighted would do well regardless of who wins you can run a check on The Allstate Corporation (ALL), AFLAC Incorporated (AFL), and The Travelers Companie, Inc. (TRV).
These insurers have done well post-Presidential election results in the past and since the election results came in this year they seem to be faring well.
BTC is on a run post the election results showing Trump as the President-elect and slated to become our 47th President, (having already served as the 45th).
Bitcoin is performing well in the wake of Trump’s win and one factor as to why that may be is the markets anticipation of more favorable tax or regulatory stances towards cryptocurrency.
Trump’s emphasis on deregulation could also ease certain restrictions on Bitcoin-related businesses, contributing to a more robust environment for crypto investments.
To your success,
— Tom Gentile
Market in Focus: Bitcoin USD – BTC
Bitcoin is viewed as a hedge against traditional financial risks.
There are other global and economic reasons that could be a reason for this impressive upward surge in the price of BTC.
Ongoing inflation concerns or concerns about traditional banking systems could also be pushing investors towards decentralized assets like BTC.
Want another reason? The US Dollar. The U.S. dollar is trading lower following Trump’s win. This could be due to market reactions to anticipated policy changes, trade relations, or fiscal strategies that investors expect from a Trump administration. Those reasons may lead investors to favor other currencies as a hedge against dollar exposure.
Technical Analysis Lesson / Observation
Take a look at the chart below on BTC from March of this year to present.
This range of days was selected because it shows how BTC traded in a sideways range for much of the year.
Since Trump was declared the winner of the Presidential election it has broken out of this range to the upside.
I want to educate you on how I project a target price on a security when it breaks out of a period of consolidation, which in this case is a sideways range.
Figure 2 above shows the sideways trading range from March of this year to the time of this writing.
To project a potential price target for a breakout of a sideways trading pattern take the price width of the trading range. That would be the price differential of support and resistance.
Whatever that price amount is add that to the breakout price or resistance price of the range and that would be an anticipated price projection for the security in the direction of that break.
I have resistance at $73,237 and support $54,108. That is a difference of $19,129.
Add that $19,129 to the resistance price of $73,237 and I have a price projection of $92,366. In Figure 3 one can see it hit that price on an intra-day basis today, November 13, 2024.
In this case that tactic of price projection out of a consolidating pattern played out.
Now what?
The way I would monitor this from a technical analysis viewpoint is to say if this momentum is going to continue higher I would anticipate a continuation of the trend and pattern playing out with another move the same width of the sideways range higher still.
One can add another 19,129 points to that target price it reached and that would make the next anticipated price target $111,495.
Another choice is to wait and see if there is a pullback for whatever reason and BTC trade in a consolidating type fashion in this upper or current price area. If it does and a bit more of a resistance price level forms consider using that.
Consider taking $73,237 as new support to whatever resistance price forms up here and wait for a break out to the upside then go from there.
To your success,
— Tom Gentile
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