Bitcoin ($BTC) almost at $100,000 as Gary Gensler reign nears end

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As a seasoned crypto investor with a decade of experience under my belt, I must admit that the impending departure of Gary Gensler from his position as SEC chairman has filled me with a sense of cautious optimism. While I initially welcomed Gensler’s appointment due to his background in Blockchain technology, his hostile stance towards the crypto industry left many of us feeling alienated and frustrated.

As Bitcoin ($BTC) inches closer to $100,000, Gary Gensler, a long-time critic of cryptocurrencies as chairman of the SEC, has announced his resignation upon Donald Trump taking office in January. Could this mark the conclusion of operation Chokepoint 2.0?

High hopes when Gensler became SEC chairman

In April 2021, Gary Gensler’s appointment as chairman of the Securities and Exchange Commission (SEC) sparked optimism among many in the cryptocurrency sector, as he was known for teaching courses on Blockchain technology and digital currencies at MIT.

Initially, people may have thought Gensler’s leadership at the SEC would be peaceful, but this perception shifted dramatically as he began to adopt a combative approach towards cryptocurrencies. Over time, his attitude towards crypto grew increasingly hostile.

A policy of ruling by enforcement actions

Gensler sent warning letters to prominent cryptocurrency platforms such as Kraken, Paxos, Binance, and Coinbase, accusing them of not being registered with the Securities and Exchange Commission (SEC) and trading in unauthorized securities, causing widespread discontent within the industry.

In response to certain attacks, they argued that no established procedure existed for them to register, and any platforms attempting to engage with the SEC were given a Wells notice regardless.

SEC commissioner scathing of her own agency

Hester Peirce, one of the SEC commissioners, has criticized her own agency on multiple occasions, labeling it as unfriendly towards cryptocurrencies and claiming that it exhibits a lack of effort and a paternalistic attitude. She argues that the SEC fails to establish a practical approach for crypto businesses striving to adhere to regulations.

Peirce accused the SEC of using enforcement as its primary go-to, when she said:

As a researcher, I find it disconcerting that today’s Commission encourages innovators to enter our markets, yet fails to accommodate them when registration proves challenging. Instead of considering practical modifications to our registration system to facilitate entrepreneurial entry, the Commission resorts to enforcement actions, seemingly punishing their goodwill. The Commission seems to view the notice-and-comment rulemaking process not as a collaborative dialogue, but as a potential threat.

As I, a researcher, reflect on the impending end of Gensler’s tenure as SEC chairman, I can’t help but wonder who the incoming Republican administration will choose to succeed him. Given the dynamic nature of the crypto sector and its potential for innovation, it is reasonable to anticipate that the new SEC chair may strive to implement regulations that foster, rather than hinder, growth in this area.

$BTC enters overbought territory in short time frame

On a 4-hour scale for Bitcoin ($BTC), it appears the upward trend from the ascending triangle pattern is persisting. The price is almost touching the significant, psychologically impactful $100,000 mark.

As a researcher, I’ve noticed that at the base of our chart, we have the Relative Strength Indicator (RSI), indicating an overbought condition has been reached. Remarkably, this indicator approached nearly 90.00 when the BTC price touched the ascending trendline from the peaks of the last bull market.

This might imply that there’s more purchasing yet to occur. The key line must rise above this point for it to counteract the bearish divergence. It’s worth noting that this situation also applies on the significantly more crucial longer timeframes.

$BTC price surge has to continue if bearish divergence is to be avoided

On a weekly basis, the price trend is moving upward, yet based on the Relative Strength Index (RSI), there’s still a tendency towards a decline. To eliminate bearish divergence in this case, the RSI indicator should rise above the threshold of 88.40.

In the previous bull market of 2021, bearish divergence ultimately led Bitcoin into a bear market. If the Relative Strength Index (RSI) starts to decline before reaching 88.40, it’s a significant warning sign that should be taken seriously.

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2024-11-22 14:04