BTC Price Rally: Kamala Harris’s Crypto Support Fuels Break Above $65k

Can BTC break through its 15-day resistance amid rising hopes for US bipartisan support?

On Monday, October 14, BTC surged by 5.36%, reversing a 0.67% loss from Sunday to close at $65,993. Significantly, BTC revisited the $66,000 level for the first time in fifteen sessions.

Kamala Harris Boosts Crypto Sentiment

US Vice President Kamala Harris voiced her support for crypto on Monday, fueling buyer demand for BTC and the broader market. Her Opportunity Agenda for Black Men included provisions aimed at:

“Supporting a regulatory framework for cryptocurrency and other digital assets so Black men who invest in and own these assets are protected.”

The Agenda highlighted that over 20% of Black Americans own or have owned crypto assets, adding,

“She will make sure owners and investors of digital assets benefit from a regulatory framework so that Black men and others who participate in this market are protected.”

Senators Warren and Marshall’s Digital Asset Anti-Money Laundering Act

Despite Harris’s support, there were no concrete details on the regulatory framework. One proposal is Senator Warren’s Digital Asset Anti-Money Laundering Act. Reintroduced in July 2023, the bill proposes banking-style anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations for crypto. The bill became a topic of discussion in December 2023.

However, the crypto community believes the legislation could adversely affect the US digital asset space. In December 2023, Senator Roger Marshall admitted that the American Bankers Association helped draft the bill. The admission coincided with a Banking Committee Hearing on Capital Hill, where JPMorgan Chase (JPM) CEO Jamie Dimon criticized cryptos, stating,

“Know Your Customer, Sanctions, OFAC, they can bypass all of that. If I was the government, I would close it down.”

Proposed legislation like these may adversely impact BTC demand, as restrictive legislation could impede innovation and slow crypto adoption.

US BTC-Spot ETF Inflows Surge

On Monday, the US BTC-spot ETF market saw inflows surge as investors likely reacted to Kamala Harris’s remarks. Bipartisan support for cryptos improves the outlook for the digital asset space. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows of $239.3 million. (Previous day: +$117.1 million).
• Bitwise Bitcoin ETF (BITB) reported inflows of $100.2 million. (Previous day: +$38.8 million).
• ARK 21Shares Bitcoin ETF (ARKB) had net inflows of $69.8 million (Previous day: +97.6 million).

Excluding flow data for iShares Bitcoin Fund (IBIT), the US BTC-spot ETF market recorded total net inflows of $476.4 million, exceeding last week’s total of $348.5 million.

Outlook

Investors should remain alert. Oversupply risk lingers, with the US government holding a stockpile of 203,239 BTC. US government plans to sell BTC could pressure BTC downward. However, US BTC-spot ETF market flow trends and sentiment toward the Fed rate path will continue to influence BTC price trends. Explore our real-time BTC analysis for insights on managing risk.

Technical Analysis

Bitcoin Analysis

BTC hovers well above the 50-day and 200-day EMAs, affirming bullish price signals.

A break above Monday’s high of $66,414 could signal a move toward the $69,000 resistance level. Furthermore, a breakout from the $69,000 resistance level may bring the $70,000 level into play.

Investors should consider US government-related transfer news, the US Presidential Election, and US BTC-spot ETF market flow trends.

Conversely, a drop below the $64,000 support level could bring the 50-day EMA into play.

With a 62.19 14-day RSI reading, BTC could climb to the $69,000 resistance level before entering overbought territory.

Ethereum Analysis

ETH sits above the 50-day EMA while remaining below the 200-day EMA, sending bullish near-term but bearish price longer-term price signals.

An ETH breakout from the $2,664 resistance level could support a move toward the 200-day EMA. Furthermore, a break above the $2,664 resistance level would bring the 200-day EMA into play.

US ETH-spot ETF market-related updates also require consideration.

Conversely, an ETH drop below the 50-day EMA could give the bears a run at the $2,403 support level.

The 14-period Daily RSI reading, 60.64, indicates an ETH break above the 200-day EMA before entering oversold territory.