Market update: Trump endorsement boosts bitcoin, ethereum steadies

Trump's new stance on cryptocurrency

Presidential candidate Donald Trump has endorsed the world's largest cryptocurrency, Bitcoin, despite previously criticising it. Speaking at a Bitcoin conference in Nashville on Saturday, the Republican nominee announced plans to establish a presidential advisory council on cryptocurrency and create a national "stockpile" of crypto, primarily from assets seized by the US government.

Trump aims to implement a more lenient regulatory approach to the cryptocurrency sector and is keen to increase mining activities across the country. Over the same weekend, nearly 30 Democratic lawmakers and congressional candidates sent a letter to the Democratic National Committee and Kamala Harris, advocating a progressive stance on digital assets.

Community endorsement for legitimising digital assets

The crypto community has largely welcomed Trump's proposal, viewing it as a significant endorsement that could further legitimise digital assets. Earlier this year, spot Bitcoin and Ethereum Exchange-Traded Funds (ETFs) were approved, although analysts anticipate lower uptake for Ethereum compared to Bitcoin.

Bitcoin technical analysis

Bitcoin prices remained stable on Saturday but followed a typical daily range observed in previous trading sessions. Since then, the cryptocurrency has maintained a bullish trend that started in early July, trading above both the 50-day and 200-day simple moving averages (SMAs).

BTC/USD is now testing trendline resistance within a rising wedge formation, typically a bearish pattern. However, the price action is nearing the upper side of this formation. Investors should watch for potential signs of bullish fatigue, particularly as the Relative Strength Index (RSI) approaches overbought territory. The upcoming resistance zone is around US$71,820, with support at US$64,000.

Bitcoin daily chart

Ethereum technical analysis

Ethereum (ETH/USD) reveals a longer-term consolidation pattern as bulls have failed to make higher highs and higher lows consistently. Shorter-term price action tells the same story, with Ethereum failing to capitalise on the same upward momentum experienced in Bitcoin ahead of last weekend. The 200-day simple moving average comes in as immediate support, with the 50 SMA and US$3,375 presenting resistance.

Ethereum daily chart

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