With the rescinding of SAB121 by the SEC, which all but stopped banks collaborating with crypto companies, this, together with other regulatory changes, sets the scene for the Bitcoin industry to innovate and grow like never before. The $BTC price is back above $105,000. The tide is turning The tide is turning, and the crypto industry is about to move into a golden age of nurturing and support in the United States, which only a short time ago was the complete opposite situation. Now that Donald Trump is in office, the political machinery of Washington D.C. is moving faster than anyone thought was possible, and Bitcoin and crypto are among the beneficiaries. SAB121 is rescinded - good riddance? The SAB121 rule was brought in by a Securities and Exchange Commission (SEC) that worked closely with the Biden administration to stifle the possibility of banks collaborating with crypto entities. The rule obliged banks that were holding crypto on behalf of a client to record the asset as a liability on the balance sheet. This made it impractical for banks to offer cryptocurrency custody services. SEC Chairman Gary Gensler was said to be heavily biased against crypto. He always maintained that the existing finance regulations were sufficient to regulate the crypto industry properly. However, when he introduced the SAB121 rule, it was seen by many as a sign of hypocrisy, given that he was showing he was open to new rules, but only if they went along with his bias. CBDCs are banned Among the many pro-crypto executive orders signed by President Trump was a complete prohibition of Central Bank Digital Currencies (CBDCs) . This technology would give complete control over money to the central bank. With this order, the President is committing the US to go down the path of decentralised money. $BTC sideways consolidation before breakout Source: TradingView The short-term time frame for $BTC shows that the price is continuing to consolidate above the wedge formation. Two good support levels are underneath the price, at $102,700, and further below at $101,300. A triangle pattern looks to be forming, although there are only two touches of the top trendline so far. Three would be needed to confirm the pattern. As the price action moves sideways and becomes more restricted by the converging trendlines a breakout to the up or downside will take place. Given that the trend is up, an upside breakout is more likely. If it is to the downside, the horizontal supports are not far below. RSI shows that bulls still have a lot to do Source: TradingView The weekly time frame is showing a clear breakout of the wedge with a perfect confirmation. With three days left in the week, the support at $101,300 looks as though it should hold. Having said that, very high volatility in the price could make this a lot more precarious in a very short amount of time. Looking at the bottom of the chart, the Relative Strength Index (RSI) has the indicator line pointing upward, signalling that buying is strong. However, it is about to move into overbought territory. This is generally fine, given that this indicator normally does go into the high 80s or 90s at the end of bull markets. In this instance, not only will the indicator need to pierce through the descending trendline, but it will also need to get above both the previous overbought tops in order to nullify the potential for bearish divergence. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
