On Monday (December 23), Bitcoin struggled to rebound at the $94,500 level, but the technical aspects flashed 'three red candles', scaring the bulls. Donald Trump, the elected President of the United States, appointed Bo Hines as the executive director of the Presidential Digital Asset Advisory Council and nominated Stephen Miran as chairman of the Economic Advisory Council. Michael Saylor, the 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 'Presidential Digital Asset Advisory Council' to lead the cryptocurrency committee. Hines, a former college football player, failed to win a congressional seat in 2022. He wrote: 'In his new position, Hines will work alongside David Sacks, who has been appointed chairman of the U.S. SEC, to drive innovation and growth in the digital asset space while ensuring industry leaders have the resources they need to succeed.'
In Trump's statement, he nominated economist and former advisor Stephen Miran as chairman of the Economic Advisory Council, which will provide economic policy and strategy advice to the administration. He previously stated: 'I believe that financial deregulation will be an important component of this. I believe that cryptocurrencies could play a significant role in innovation and ushering in another economic boom under the Trump administration.'
As Trump continues to select officials for his cabinet who support cryptocurrency and innovation, 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, which could create $16 trillion to $81 trillion in wealth for the U.S. Treasury to offset national debt.
In an interview with U.S. CNBC, he stated that he believes Trump is serious about establishing a national Bitcoin reserve, and that if he knows where the funds are going, they should buy Bitcoin for the future. 'All funds from outside the U.S., along with all outdated capital from the 20th century, will flow into digital assets and the Bitcoin network. For the U.S., the most logical thing to do 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. He emphasized that Bitcoin will grow 100 times and advised investors to buy as soon as possible. He also urged the incoming Trump administration to take the lead in establishing a digital asset framework, clearly defining the roles of different entities and determining participants' responsibilities.
Trump reported in November that he plans to establish a cryptocurrency advisory council to provide advice on digital asset policy, collaborate with Congress to draft cryptocurrency-related legislation, and assist in establishing a Bitcoin reserve. Several cryptocurrency companies, including Ripple, Kraken, and Circle, are racing to secure seats on the cryptocurrency advisory council.
Saylor may also have the opportunity to become a member of the cryptocurrency advisory council, as he clearly stated in a December 19 interview with Bloomberg that he is willing to serve as a cryptocurrency affairs advisor under the Trump administration.
When asked whether he had any contact with Trump or members of the Trump administration, Saylor stated, 'I have met with many people in the incoming government, but beyond that, I cannot say more.'
However, when asked if he would be willing to participate in the cryptocurrency advisory council, Saylor clearly responded that if Trump asked him to do so, he would be willing to provide advice on digital asset policy, both publicly and privately. 'I am always willing to provide advice on constructive digital asset policies, whether in private or public settings. If I were invited to participate in some type of digital asset advisory council, I would likely agree, yes,' he said.
Bitcoin Technical Analysis
CoinTelegraph pointed out that the Bitcoin daily chart has seen its first consecutive three red candles since the first week of November, which coincides with the eve of Trump's victory in the U.S. election. Another similarity to the last observation of three or more red candles on the daily chart is that Bitcoin is retesting the 50-day EMA level.
Analysts say 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 have ended.
As the Bitcoin price fell below $93,000 on December 20, independent cryptocurrency trader Captain Faibik indicated that the Bitcoin 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 divergence usually leads to a drop of 8-10%, which is considered a 'healthy reset.'
As shown in the figure, traders expect the price to rebound from the range of $94,000.
In contrast, anonymous cryptocurrency trader Cold Blooded Shiller expects a larger correction in Bitcoin based on the same divergence pattern. This trader compared the current price trend of Bitcoin to the price trend in January 2024, stating that if a similar result occurs, Bitcoin's sell-off could drop to $85,000.
Meanwhile, futures market analyst Byzantine General emphasized that spot holders are continuously selling. 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 stated that this is Coinbase's most significant sell-off activity since Bitcoin's price reached $66,000. The selling pressure is 'relentless', as the Coinbase premium has fallen to a quarterly low.
