Cryptocurrencies rallied overnight on growing optimism that regulatory environment for digital assets in the US may improve following the upcoming presidential election in November. This boost in sentiment was initially driven by a rise in Donald Trump’s standing in prediction markets and some polls, as he is perceived to be more pro-crypto compared. Later, the market received another push after Kamala Harris’ campaign made supportive comments, pledging to support a regulatory framework for cryptocurrencies.
Technically, however, Bitcoin is still stuck in medium term consolidation pattern from 73012 (March high). The range is pretty much set between 50% retracement of 24896 to 37812 at 49354, i.e. between 49k and 74k in short.
Further near term rise is in favor as long as 58846 support holds. Break of 66854 will target a test on 73812 high. However, there is so far no indication of sustainable momentum through to new record.
Ethereum’s outlook is worse. Current bounce might be just a leg of the consolidation pattern from 2084.52 low. Further decline will remain in favor as long as 2797.60 resistance holds. Break of 20845.71 will resume the larger down trend from 4092.55 (March high).
