On Wednesday (December 18), Bitcoin hit a record high of $108,336 before falling back to $106,000 to catch its breath. Satoshi Act Fund's prediction came true last week, with the Ohio House of Representatives submitting a Bitcoin strategy bill, joining Texas. U.S. President-elect Donald Trump met with CEO of crypto exchange Crypto.com Kris Marszalek to discuss new government appointments and the national strategic reserve of Bitcoin.
Ohio Congressman Derek Merrin filed Bill 703 (Ohio Bitcoin Reserve Act), proposing to establish a Bitcoin Reserve Fund in the state treasury and authorize the state treasurer to invest in Bitcoin flexibly, but without mandatory requirements.
Merlin pointed out that the U.S. dollar is rapidly depreciating and Bitcoin can be used as a tool to protect tax funds and strengthen state finances. This legislation provides a framework for state governments to use Bitcoin technology to address economic challenges and promote innovation. Similar bills have been proposed in Texas and Pennsylvania, with the goal of establishing state-level Bitcoin reserves.
It is worth noting that Dennis Porter, CEO of the Satoshi Action Fund, released a heavy signal on Twitter last Friday. He predicted: "Next week we will announce the launch of another 'Bitcoin Strategic Reserve' bill. The dominoes are falling."
Now it appears that the news is being confirmed.
Mazarek posted a photo with Trump on Twitter. According to CoinTelegraph, the two met to discuss his appointments to the cryptocurrency industry under the new administration and the upcoming Bitcoin strategic reserve.
The meeting took place on the same day that Crypto.com dropped its lawsuit against the U.S. Securities and Exchange Commission (SEC). On Monday, the crypto exchange filed documents in the U.S. District Court for the Eastern District of Texas, voluntarily dropping its lawsuit against the SEC and its commissioners.
Crypto previously received a Wells Notice, which warned the SEC of possible enforcement action, and Mazarek said in October that the exchange would file a lawsuit against the SEC "to protect the future of cryptocurrency." But a spokesperson for the exchange said the company withdrew the lawsuit "as it intends to work with the incoming administration to develop a regulatory framework for the industry."
Since winning the U.S. presidential election on November 5, Trump’s recommendations for appointments have indicated his intention to nominate individuals who support the cryptocurrency industry, having launched his own digital asset project World Liberty Financial (WLFI) before the election.
In addition to Mazarek, Trump reportedly spoke with Coinbase CEO Brian Armstrong in November to discuss appointments. Since that meeting, Trump has announced the appointment of former PayPal COO David Sacks as his "AI and cryptocurrency czar" and former Commissioner Paul Atkins as SEC chairman.
Bitcoin Technical Analysis
On the daily chart, Bitcoin has been making new highs and lows over the past few weeks, even though the uptrend slowed down after breaking through the $90,000 level. Meanwhile, the market failed to break through the $100,000 level in its first few attempts, but finally succeeded a few days ago.
Currently, the $110,000 and $120,000 levels are likely to be targets for Bitcoin as the $100,000 level has now acted as a support area.
However, the 4-hour chart shows worrying signs. The market has not yet broken out of the ascending channel and if it breaks below the descending channel, a reversal pattern could form. The price is currently testing the upside boundary and in case of a bearish rejection, the $100,000 support level would be the first possible destination.
However, if the market can break out of this upside pattern, the price is expected to rise sharply.
Over the past few weeks, Bitcoin prices have been rising to new all-time highs, and investors have started buying in large quantities. This in itself could be the main reason for the recent upward trend.
The chart below shows the exchange reserves metric, which measures the amount of Bitcoin held in exchange wallets. This is a very useful metric that many analysts use as a proxy for supply.
As shown in the chart, the exchange reserve indicator has dropped rapidly in recent weeks, indicating a significant reduction in supply. If this trend continues, the price of Bitcoin may rise in the coming months as the supply and demand equation clearly favors price increases.
