Why Trump Banning TikTok May Be a Blessing for Bitcoin Price, Adoption

Why Trump Banning TikTok Might Be a Blessing for Bitcoin Value, Adoption

Yesterday noticed many main altcoins rally to their yearly highs, with Ether (ETH) surging previous $400, which I anticipated was a probable situation in my final article two weeks in the past.  

As well as, XRP additionally had a bumper day exceeding $0.32 whereas momentarily outperforming Bitcoin as anticipated in my July 1 article. 

Nevertheless, Bitcoin confirmed its dominance within the house by wiping out a number of billion of those positive factors in a bit of over an hour. So what does the week forward appear to be, and simply what kind of affect might Trump’s TikTok ban have on the cryptocurrency house?

Day by day cryptocurrency market snapshot, Aug. 2. Supply: Coin360.com

Let’s get some perspective 

BTC/USD 1-week chart

BTC/USD 1-week chart. Supply: TradingView 

Bitcoin on the weekly reveals an image of the longer term. The main cryptocurrency by market capitalization has already examined the 0.5 Fibonacci retracement stage of $12Okay earlier than being rejected.  

In the event you haven’t been listening to the weekly fib, then it is best to most likely google the best way to use the Fibonacci software on Tradingview proper now as a result of it’s most likely the closest you’ll ever get to having Marty McFly’s sports activities almanac in Again to the Future 2 than you’ll ever get.  

The following stage to assert is 0.618, which sits at $13,500, and when you’re pleased with 20% positive factors on Bitcoin, that’s nice. However whenever you take a look at different top-tier alts, you will note that the majority are buying and selling below the 0.236 fib, which suggests larger upside potential, and that is one thing we skilled this weekend. 

Let’s begin with Ethereum 

ETH/USD 1-week chart

ETH/USD 1-week chart. Supply: TradingView 

Ether (ETH) exploded by 80% from the underside of an ascending channel and already made a run on the 0.236 fib. Preserve behind your thoughts that Bitcoin is at present on the 0.5 fib, or two ranges increased than the 0.236, and ETH hasn’t even claimed that stage but.  

Simply wait till this stage is damaged and Ether makes a run-up to 0.382, that’s an ETH worth of $660, and that is doubtless solely the start.  

The potential draw back now sits across the high of the channel it broke out from, which is round $300-$330, and under right here I’d be trying on the middle a part of the channel of round $280.  

Regardless of the very fact ranges have already been hit in a flash crash earlier this morning, I wouldn’t be in any respect stunned in the event that they had been reached once more earlier than the following leg as much as $660.  

What´s cooking with XRP 

XRP/USD 1-week chart

XRP/USD 1-week chart. Supply: TradingView

In the event you appreciated the ETH chart, you’ll most likely perceive why XRP rallied onerous too.  XRP briefly broke out of the identical ascending channel that Ether was in, solely XRP nonetheless has a protracted solution to go to the 0.236 fib. 

As a matter of truth, it has a monstrous 188% transfer to attain in an effort to attain the $0.85c fib goal.  So when you missed Bitcoin, and also you missed Ether, there’s nonetheless an excellent probability that the quantity three digital asset by market capitalization might present insane positive factors from its present stage.  

The draw back potential for XRP utilizing the identical channel ranges as Ether sits at 24 cents for the center channel and 19 cents for the decrease goal. As soon as once more, the primary stage has already been examined within the flash crash, so whether or not we’ll see these ranges once more within the brief time period is unlikely contemplating the present fib targets.  

However when you’re frightened about FOMOing in on the high, there’s one other main crypto that’s but to awake from its bear hibernation. 

EOS is but to run 

EOS/USD 1-week chart

EOS/USD 1-week chart. Supply: TradingView 

EOS hasn’t been getting a lot consideration currently, and technically talking, it’s trying like the following large-cap coin to make an enormous run-up to 0.236, which within the case of EOS is $6.50 and with the value slightly below $3, this might provide you with some spectacular positive factors within the brief time period. 

Since EOS is but to interrupt out of its channel, it’s only logical as different high tier alts begin to rally within the shadow of Bitcoin, that merchants and buyers will begin charts buying and selling on the backside, identical to I seen with ETH and XRP, EOS is at present nonetheless buying and selling within the decrease a part of its channel, not fairly the underside — the underside is planted at $2.50 — however the danger vs. reward for EOS actually seems interesting.  

There are additionally different good causes to be EOS proper now. Not solely is Brock Pierce at present working for POTUS, which may solely be a great factor for EOS, however dad or mum firm Block.one are concentrating on Gen Z customers flocking from TikTok with their Voice Social Media platform. In a tweet on July 30, Pierce mentioned: 

“Gen Z is mobilizing to face up for his or her rights and privateness! People could make a distinction. EVERY VOICE HEARD” 

Pierce additionally cites an LA Instances about fashionable TikTok stars leaving the platform amid privateness considerations. 

The early Bitcoin investor is thought for betting on the correct factor and the correct time, and with President Trump hinting in direction of a ban on TikTok as early as tomorrow, there’s a gap within the U.S. market the place 80 million customers could also be searching for options. 

Whereas this will put EOS in a great place for further publicity, there are already different blockchain-based social media platforms which are centered on bringing new customers to the crypto house.  

As soon as such firm has not too long ago undergone a rebrand forward of its launch this month, referred to as Hyprr, which is U.S.-based and partnered with banking big Wells Fargo for purportedly straightforward on and off-ramps into crypto, which places it in prime place to take over TikToks U.S.-based market share.

I contacted Hyprr CEO David Brieley about his place within the wake of the potential TikTok ban, the place he instructed me that Gen Z consumes 5 billion hours of content material per day through social media, which is twice that of millennials. 

In the event you take into account that Steemit as soon as occupied a $1.eight billion market cap largely primarily based on hypothesis and millennial attraction, you possibly can solely think about the constructive affect a profitable blockchain-based social media platform might have in the marketplace if it took off like TikTok, and what higher approach than to do within the wake of such an enormous controversial ban of considered one of fastest-growing viral platforms. 

The bearish situation for Bitcoin

If Bitcoin fails to carry the earlier multi-year resistance of $10,500 as recent help, I’d count on the draw back to be restricted to the 0.382 fib of round $9,500. Nevertheless plainly the bulls are going to be in management for a short while.  

The bullish situation for Bitcoin 

If Bitcoin can push previous and maintain above $12Okay, then the following logical space of resistance is $13,500, which represents the 0.618 fib. Nevertheless, with alts rallying, and the cyclical impact of low-cap alts flowing into top-tier alts, after which again into Bitcoin earlier than beginning yet again, I’d count on the value of Bitcoin to stay fairly flat over the following week. 

The views and opinions expressed listed below are solely these of @officiallykeith and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer includes danger. It’s best to conduct your personal analysis when making a call.