Bitcoin, the world’s largest cryptocurrency by market cap, has generated excitement as its price surged to an all-time high (ATH). At the time of writing, Bitcoin is trading at $69,611, up 3.36% in the past 24 hours. Meanwhile, the global cryptocurrency market grew 3.5% to $2.48 trillion
Trump’s Commitment to the Crypto Community
Shortly after Trump pledged to make the United States the "cryptocurrency capital of the world" and a "bitcoin superpower" at a Bitcoin conference in Nashville, he said: "If cryptocurrency is going to define the future, I want it to be mined, minted and manufactured in the United States." Shortly after expressing support for Bitcoin, traders seemed confident about the prospects of Bitcoin.
Trump also plans to fire SEC Chairman Gary Gensler on his first day in office, aiming to appoint a new chairman who will support cryptocurrency innovation rather than hinder its future.
Inflation eases ahead of Fed meeting
Easing inflation is another key factor boosting market optimism. As inflationary pressures fall, expectations of a rate cut by the Federal Reserve rise. Such measures typically encourage investment in riskier assets such as cryptocurrencies, as lower interest rates reduce borrowing costs and attract more money into the market. Meanwhile, investors are eagerly awaiting the Fed's announcement of its rate cut stance at the FOMC meeting on July 31.
Crypto whales increase their holdings
Unusual Whales, a platform that provides insights into large investor activity, reported an increase in buying activity by cryptocurrency whales over the weekend.
These large investors, known for their ability to influence market trends, have been accumulating cryptocurrencies, contributing to the upward momentum. Their actions indicate their confidence in the market’s potential for further gains.
The aforementioned positive factors have taken Bitcoin price to nearly $70,000, but the bearish activity started before reaching this milestone. Although they seem to be stationed at these levels, the bulls may not exert great strength to reclaim these levels as Bitcoin price is at the foot of a massive breakout.
The $70,000 resistance level was very weak from the start as bulls have been unable to sustain this level. As a result, a notable pullback was triggered. Currently, buyers are declining after pushing the price as high as $69,800 in the past session, so traders may expect the rally to slow down. However, the star coin does come with a hidden bullish divergence, which has been key to triggering a strong uptrend since then.
Bitcoin’s weekly chart has also entered a bullish range as the price broke the support that turned into resistance for more than a year. As a result, the price is close to entering the critical resistance zone between $69,750 and $71,916. If the bulls make this move possible, market players can expect a close of the month around $70,800 to $71,500. The bullish outlook remains high as the RSI has broken the ascending support, but the Bollinger Band formation raises some concerns.
The two bands are parallel to each other, suggesting that the price may continue to consolidate below the resistance zone. Therefore, if the bulls fail to break out of this zone and continue to gather strength, this could lead to BTC price consolidating below $70,000 for a few weeks until a culmination is reached. Another possibility is a plunge to $62,000 or $61,000 followed by a rebound to $70,000, which could complete a “head and shoulders” pattern, triggering a massive uptick after breaking through the neckline. The upcoming monthly close could be extremely important for Bitcoin price gains as it will have a huge impact on the rest of the quarterly trading.
I think Bitcoin bulls have gained tremendous strength after a bullish weekend and prices will continue to move higher in the coming days and are expected to hold a key area as the monthly close approaches, sparking a strong rebound and continued upwards in the coming month.
