On Monday (December 23), Bitcoin struggled to rebound at the $94,500 level, but the technical indicators flashed three red candles, scaring the bulls. President-elect Donald Trump appointed Bo Hines as Executive Director of the President's Digital Asset Advisory Committee and nominated Stephen Miran as Chairman of the Economic Advisory Council. Michael Saylor, founder of MicroStrategy, stated that Trump is serious about establishing a national Bitcoin strategic reserve and has met with the new government team multiple times.
According to The Block, Trump announced the appointment of Hines as the Executive Director of his "President's Digital Asset Advisory Committee," leading his crypto committee. Hines was a former college football player who failed to win a seat in the House of Representatives in 2022. He wrote, "In his new role, Hines will work alongside David Sacks, who has been appointed Chairman of the U.S. Securities and Exchange Commission, to drive innovation and growth in the digital asset space while ensuring industry leaders have the resources they need to succeed."
Trump's statement nominated economist and former advisor Stephen Miran as Chairman of the Economic Advisory Council, which will provide consultation to the executive branch on economic policy and strategy. He previously stated, "I believe that financial deregulation will be an important component of this. I think cryptocurrency could play a significant role in innovation and ushering in another economic boom under the Trump administration."
As Trump continues to select officials supportive of crypto and innovation for his cabinet, many in the crypto community are celebrating Miran's nomination, viewing it as a positive development for the crypto industry.
Over the weekend, Saylor posted an asset framework on Twitter, advocating for the establishment of a Bitcoin reserve that could create $16 trillion to $81 trillion in wealth for the U.S. Treasury, offsetting national debt.
In an interview with CNBC, he expressed his belief that Trump is serious about establishing a national Bitcoin reserve, and if he knows where the funds are flowing, he should buy for the future. "All funds from outside the U.S. and all outdated capital from the 20th century will flow into digital assets and the Bitcoin network. The most logical move for the U.S. is to buy Bitcoin now and seize the future."
Saylor suggested that the government could sell its gold reserves or borrow a "small amount" of funds to purchase 20-25% of the circulating Bitcoin, emphasizing that Bitcoin will grow 100-fold. He advised investors to buy early and urged the incoming Trump administration to take the lead in establishing a digital asset framework, clearly defining the roles of different entities and determining the responsibilities of participants.
In November, Trump reported that he plans to set up a cryptocurrency advisory committee to provide guidance on digital asset policy, collaborate with Congress on cryptocurrency-related legislation, and assist in establishing Bitcoin reserves. Numerous cryptocurrency companies, including Ripple, Kraken, and Circle, are vying for seats on the cryptocurrency advisory committee.
Saylor may also have the opportunity to become a member of the cryptocurrency advisory committee, as he clearly stated in a Bloomberg interview on December 19 that he is willing to serve as a cryptocurrency advisor under the Trump administration.
When asked if he has had any contact with Trump or members of the Trump administration, Saylor stated, "I have met with many people in the incoming administration, but beyond that, I can't say much more."
However, when asked if he would be willing to participate in the cryptocurrency advisory committee, Saylor responded that if Trump asked him to do so, he would be willing to provide advice on digital asset policy, whether publicly or privately. "I am always willing to offer advice on constructive digital asset policy, whether in private or public settings. If I were invited to participate in some type of digital asset advisory committee, I might accept, yes," he said.
Bitcoin Technical Analysis
CoinTelegraph noted that the Bitcoin daily chart has shown three consecutive red candles for the first time since the first week of November, just before Trump's victory in the U.S. election. Another similarity to when three or more red candles were last observed on the daily chart is that Bitcoin is retesting the 50-day EMA level.
Analysts stated that Bitcoin's price has fallen more than 15% from its all-time high, and for this largest cryptocurrency, most of the downward trend may be over.
As Bitcoin's price fell below $93,000 on December 20, independent cryptocurrency trader Captain Faibik indicated that Bitcoin's correction is nearing its end. He emphasized that the current decline in Bitcoin is due to a significant bearish divergence between its price and the Relative Strength Index (RSI) over the past month. Such divergences typically lead to a drop of 8-10%, which is considered a "healthy reset."
As shown, traders expect prices to rebound from the $94,000 range.
In contrast, anonymous cryptocurrency trader Cold Blooded Shiller expects a larger correction in Bitcoin based on the same divergence pattern. This trader compared Bitcoin's current price movement to that in January 2024, stating that if similar results occur, Bitcoin's sell-off could drop to $85,000.
Meanwhile, futures market analyst Byzantine General emphasized that spot holders are continuously selling off. The analyst stated, "We are currently actually receiving perpetual options premiums because the spot sell-off is so significant that it has decoupled from the derivatives market."
In fact, CryptoQuant analyst Maartunn indicated that this is the most significant sell-off activity on Coinbase since Bitcoin's price reached $66,000. The selling pressure is relentless, as the Coinbase premium has fallen to a quarterly low.
