Markets
Will Biden’s announcement generate a $70,000 rally?
Bitcoin price hit a 30-day high of $68,457 on Monday, July 22, 2024, as BTC markets reacted to crypto-friendly Donald Trump further extending his lead after Biden dropped out of the presidential re-election race.
Biden announcement sends Bitcoin price to 30-day high
After surviving a minor correction scare on Friday, July 19, Bitcoin price entered a new uptrend over the weekend, following a dramatic turn in the US presidential election race.
On July 21, the American president Joe Biden U.S. President Donald Trump has announced his decision to withdraw from the 2024 re-election race. Investors anticipate that the move could further tilt the market in favor of Donald Trump, a self-proclaimed crypto-friendly candidate.
Therefore, Bitcoin experienced considerable buying pressure over the weekend, just like the rest of the cryptocurrency markets.
Bitcoin price dropped to a daily low of $63,294 amid intense market volatility on Friday, July 19. However, following Biden’s announcement on Sunday, Bitcoin price surged 8.28% to $68,477, as US markets opened on Monday, July 22.
It is worth noting that $68,477 is the highest price Bitcoin has been in over 30 days since June 10. This shows that US-based investors are taking bullish positions on BTC as Trump further widens his lead ahead of the presidential elections scheduled for November 2024.
Additionally, while Bitcoin’s market cap surged by over $100 billion during the 8.2% weekend rally, the rest of the altcoin markets also benefited from the improved market sentiment. The Crypto TOTAL Cap chart above clearly shows how the overall valuation of the broader cryptocurrency market has increased by 7.74% (~$175 billion) over the last 72 hours.
Under the Biden administration, US authorities have engaged in lengthy legal battles with various crypto entities, including Ripple, Binance, Coinbase, Uniswap, to name a few. The administration has also secured convictions of high-profile figures, including Sam Bankman-Fried and Binance co-founder/CEO Changpeng Zhao.
Unsurprisingly, the positive market reaction over the weekend suggests that investors are interpreting that a Donald Trump presidency could potentially provide a more favorable regulatory landscape for crypto markets more broadly than what the sector has experienced under Biden.
If this growing narrative persists, it could create a strong wall of buying resistance preventing dramatic corrections in the near term as Bitcoin price approaches the $70,000 mark.
BTC Price Prediction: $70,000 Target Now in Sight
Bitcoin price action over the past 72 hours indicates a significant uptrend, after recovering sharply from its recent lows. The price has climbed back above the 9-day Arnaud Legoux Moving Average (ALMA) of $67,117.61, suggesting short-term bullish momentum.
Additionally, the Bollinger Bands (BB), with the upper band at $69,353.58 and the lower band at $52,878.43, are widening, indicating increased volatility, which is often a precursor to a major breakout.
Currently, Bitcoin is facing resistance around the $68,000 level, as evidenced by the recent pullback from its high. If BTC manages to break through this resistance, the next major target would be $70,000, which is the upper Bollinger Band.
On the downside, immediate support lies at the 9-day ALMA of $67,117.61, with a more substantial support level at the lower Bollinger Band of $61,116.00.
The recent 8.28% three-day gain, as shown in the chart, further strengthens the bullish outlook. However, traders should remain cautious due to the increased volatility. A sustained move above $68,000 could pave the way for further gains towards the $70,000 target, but failure to hold this level could result in a retracement towards the mentioned support areas.
Overall, while technical indicators suggest a bullish trend with a target of $70,000 in sight, traders should watch for potential resistance at $68,000 and closely monitor support levels to manage their positions effectively.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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