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According to a recent Forbes report, US lawmakers from both sides of the political spectrum are rallying around a proposal to create a strategic Bitcoin (BTC) reserve for the US, following Senator Cynthia Lummis’ speech at the 2024 Bitcoin Conference in Nashville. 

The pro-crypto Senator unveiled the new legislation to use existing federal funds to purchase one million BTC, positioning the United States as the largest nation-state holder of the cryptocurrency. 

Bitcoin As Federal Reserve Asset

On the same day Lummis introduced her legislation, former President Donald Trump outlined his own vision for a “national Bitcoin stockpile,” committing to never sell the roughly 200,000 Bitcoin currently held by the US government. Trump characterized BTC as akin to the steel industry of a century ago, asserting his intent to make the US the “crypto capital of the planet.”

Former presidential candidate Robert F. Kennedy Jr. also contributed to the discussion, proposing a more ambitious plan to acquire five million BTC—approximately a quarter of the global supply. 

Interestingly, support for a strategic Bitcoin reserve is increasingly crossing party lines. Representative Ro Khanna, a Democrat from California, has publicly endorsed the idea, emphasizing the need for the Federal Reserve (Fed) to consider Bitcoin as a reserve asset. 

“We want to make sure that we have the openness to having Bitcoin as part of the Federal Reserve,” Khanna stated in a recent podcast, highlighting BTC’s potential for appreciation and its role in establishing financial standards.

Democratic Push For Digital Assets

The Bitcoin currently held by the US government primarily comes from confiscations related to illicit activities. Traditionally, the government would liquidate these assets, but Khanna argues that this BTC should be retained as a strategic reserve, allowing the US to benefit from its value over time.

Khanna also played a pivotal role in urging the Democratic National Committee to revise its stance on digital assets. In a letter to party leaders, he called for a “crypto reset,” advocating for the inclusion of pro-digital asset language in the party platform and greater engagement with industry experts.

Dennis Porter, CEO of the non-profit Satoshi Action Fund, suggested that supporting initiatives such as a strategic Bitcoin reserve could help Democrats connect with a growing demographic of BTC voters. He believes that as the cryptocurrency matures, the political partisanship surrounding it will diminish. 

Khanna echoed this sentiment, asserting that opposing BTC is akin to rejecting technological advancements. “You can’t be against Bitcoin or crypto; it’s just a technology,” he remarked, reinforcing the notion that embracing digital assets could align with broader party goals, including financial equity and sustainable energy policies.

Lummis, who champions the bipartisan potential of Bitcoin, urged both Republicans and Democrats to support her bill. “Although the Republican National Committee and President Trump have come out strong in support of Bitcoin, I would expect my colleagues across the aisle to join us,” she stated, indicating that the 2024 election cycle may be a pivotal moment for cryptocurrency policy.

At the time of writing, BTC is trading at $60,333, down nearly 4% over the past seven days. 

Featured image from DALL-E, chart from TradingView.com

Bitcoin has recently faced a 10% correction since last Friday, but it is now holding above a crucial support level that could pave the way for a price rally. Analysts and investors eagerly watch the market, hoping BTC will regain momentum.

With the potential for increased demand on the horizon, many are sharing valuable insights that bolster this bullish sentiment.

One prominent analyst, Ali, has highlighted key data from Santiment, indicating significant activity among Bitcoin whales over the past ten days. This heightened activity among large holders suggests a bullish outlook for BTC in the coming weeks, indicating growing confidence in the asset.

The combination of a strong support level and positive whale activity has many investors optimistic about Bitcoin’s potential for recovery and upward movement.

As the market continues to evolve, all eyes are on Bitcoin to see if it can capitalize on this crucial juncture. A sustained rally could restore confidence among investors and set the stage for new highs as the crypto market remains focused on BTC’s performance.

Bitcoin Whales Buying Before A Big Move 

Bitcoin’s sentiment has seen a rollercoaster over the past few weeks, shifting from extreme fear to a wave of optimism and returning to some anxiety following yesterday’s drop to $60,100. This volatility in price action and sentiment reflects the ongoing uncertainty in the crypto market, leaving many investors cautious.

However, while the broader market sentiment has fluctuated, Bitcoin whales have demonstrated a remarkably consistent behavior pattern.

Recent data from Santiment, shared on X by top crypto analyst Ali, highlights that Bitcoin whales have purchased over 50,000 BTC in the last 10 days. This massive accumulation represents approximately $3.15 billion at current market prices, showcasing the confidence of these large holders in BTC’s potential for future price appreciation.

The whale activity underscores a significant trend: these savvy investors tend to increase their holdings during heightened volatility and uncertainty, often anticipating a bullish reversal.

Consistent whale behavior amidst fluctuating market sentiment suggests robust underlying demand for BTC. Their accumulation may signal that they believe the recent dip is a temporary setback rather than the beginning of a prolonged downturn.

As the market continues to grapple with its direction, the actions of these whales could provide valuable insight into Bitcoin’s near-term prospects, indicating that despite the current uncertainty, a recovery might be on the horizon. Investors will watch keenly to see if this whale-driven accumulation will translate into upward price momentum in the coming days.

BTC Price Action – $60,000 Support Is Crucial 

Bitcoin (BTC) is currently trading at $61,180 after recently testing the daily 200 exponential moving average (EMA) as support around $60,100. This level has proven crucial, as it indicates strength and liquidity in the market.

However, the price is struggling to gain bullish momentum, remaining just above this key support level. For the bulls to regain control, BTC must reclaim the 1D 200 moving average (MA) at $63,600 and establish it as a solid support. A successful breakout above this resistance could pave the way for a more substantial upward movement.

Conversely, if Bitcoin fails to maintain its position above the $60,000 mark, the market may face a deeper correction, potentially targeting lower levels around $57,500. Such a decline would raise concerns among investors and traders, highlighting the importance of the current price action.

As the market grapples with these critical levels, participants will closely monitor BTC’s ability to hold above the EMA and the potential for a bullish resurgence. The next few trading sessions will be vital in determining the short-term trajectory for Bitcoin, as sentiment continues to oscillate amid market volatility.

Featured image from Dall-E, chart from TradingView

Meme cryptocurrency Dogecoin has had quite a few days of intriguing price action coupled with intense volatility. Notably, Dogecoin, which ended the last days of September on a bullish run, has since reversed those gains and is back where it left off just above $0.10. 

According to a technical analysis of the Dogecoin price action, the meme coin broke above a multi-month downtrend last week. However, as it stands, a recent correction in the past 48 hours has seen DOGE reversing to retest the breakout point. As noted by a crypto analyst, this retest is crucial to DOGE’s performance in the coming weeks and months. A bounce or a break below could make or break the meme coin’s price.

Dogecoin Retesting The Macro Falling Wedge

A crypto analyst known as Kevin on social media platform X, recently made known an interesting piece on the current DOGE price action. Kevin has built a reputation among his social media followers for his extensive analysis of DOGE price action on X. According to a Dogecoin chart he shared, the meme coin, which recently peaked above $0.13, is now retesting the upper trendline of the multi-month falling wedge that it successfully broke out of just last week.

According to Kevin, this type of retest is actually normal when breakouts like this play out. A retest and a subsequent move to the upside often act as confirmation of the breakout. However, with the current situation of things, this retest could be more than just a retest. This is because a break below the trendline would mean that the meme coin is still stuck in a multi-month downtrend and has not broken out as most investors had hoped. This, in turn, could cascade into a decline that could eventually see DOGE reaching a low of $0.085 in the coming weeks or even create a lower low below that level. 

#Dogecoin is currently back testing the macro falling wedge it broke out of a week ago which is technically a bullish back test and should occur when these patterns play out. If #DOGE loses this area then big trouble awaits. We need to hold this zone for this 6 month pattern to… pic.twitter.com/kYTWuQTwNH

— Kevin (@Kev_Capital_TA) October 1, 2024

Consequently, the $0.11 to the $0.108 zone is a crucial zone for Dogecoin bulls to hold on to. In the words of crypto analyst Kevin, Dogecoin needs “to hold this zone for this 6-month pattern to not fail.”

 

What’s Next For DOGE?

At the time of writing, Dogecoin is trading at $0.1085 and is down by 8.5% in the past 24 hours. If bulls are able to maintain the price above this key zone in the next few days, it would reinforce the validity of the recent breakout and potentially pave the way for further upside in the coming weeks. 

Dogecoin’s price decline in the past 24 hours isn’t an isolated move and is part of a wider decline among many cryptocurrencies. The hype leading up to October (Uptober) has degraded into a decline in the price of cryptocurrencies on the first day of the month.