On Wednesday (December 18), Bitcoin fell back to the $106,000 level after hitting a historic high of $108,336. The Satoshi Action Fund's prediction came true last week as the Ohio House submitted a Bitcoin Strategic Bill, joining Texas. U.S. President-elect Donald Trump met with Crypto.com CEO Kris Mazarick to discuss new government appointments and the national Bitcoin Strategic Reserve.
Ohio Representative Derek Merrin has submitted Bill 703 (Ohio Bitcoin Reserve Act), proposing to establish a Bitcoin reserve fund in the state treasury and authorizing the state treasurer to invest in Bitcoin flexibly, but without a mandatory requirement.
Merrin noted that the dollar is rapidly depreciating, and Bitcoin can serve as a tool to protect tax funds and enhance state finances. This legislation provides a framework for state governments to utilize Bitcoin technology to address economic challenges and promote innovation. Similar bills have also been proposed in Texas and Pennsylvania, aiming to establish state-level Bitcoin reserves.
Notably, Satoshi Action Fund CEO Dennis Porter released a significant signal on Twitter last Friday, forecasting: 'Next week we will announce the launch of another Bitcoin Strategic Reserve bill, the dominoes are falling.'
It now seems that the news is being confirmed.
Mazarick posted a photo with Trump on Twitter, and according to CoinTelegraph, the two met to discuss his appointments in the cryptocurrency industry under the new government and the forthcoming Bitcoin Strategic Reserve.
On the same day the meeting was held, Crypto.com withdrew its lawsuit against the SEC. On Monday, the cryptocurrency exchange filed documents with the U.S. District Court for the Eastern District of Texas, voluntarily dismissing its lawsuit against the SEC and its commissioners.
Crypto previously received a Wells Notice, warning that the SEC could take enforcement action. Mazarick stated in October that the exchange would sue the SEC 'to protect the future of cryptocurrency.' However, an exchange spokesperson said the company withdrew the lawsuit 'because it intends to cooperate with the incoming government to develop an industry regulatory framework.'
Since winning the U.S. presidential election on November 5, Trump's appointment suggestions indicate he intends to nominate individuals supportive of the cryptocurrency industry; he launched his digital asset project World Liberty Financial (WLFI) before the election.
Reportedly, besides Mazarick, Trump also spoke with Coinbase CEO Brian Armstrong in November about personnel appointments. Since that meeting, Trump has announced the appointment of former PayPal COO David Sacks as his 'Artificial Intelligence (AI) and Cryptocurrency Czar' and appointed former commissioner Paul Atkins as the chairman of the SEC.
Bitcoin technical analysis
On the daily chart, Bitcoin has been setting new highs and lows over the past few weeks, even as the upward trend slowed after breaking the $90,000 level. Meanwhile, the market failed to break the $100,000 level in its initial attempts but finally succeeded a few days ago.
Currently, levels of $110,000 and $120,000 may be the targets for Bitcoin, as the $100,000 level has now become a support area.
However, the 4-hour chart shows concerning signals. The market has not broken through the upward channel, and if it falls below the downward channel, a reversal pattern may form. The price is currently testing the upper boundary, and if a bearish rejection occurs, the $100,000 support level will be the first potential target.
However, if the market can break through this upward pattern, the price is expected to rise significantly.
In recent weeks, Bitcoin's price has surged to a historic high, prompting investors to buy in large quantities. This may itself be the main reason for the recent upward trend.
The chart below shows the exchange reserve indicator, which measures the amount of Bitcoin held in exchange wallets. This is a very useful indicator that many analysts use as a representation of supply.
As shown in the chart, the exchange reserve indicator has rapidly declined in recent weeks, indicating a significant reduction in supply. If this trend continues, Bitcoin's price may rise in the coming months as the supply-demand equation clearly favors a price increase.
