Bitcoin Price Forecast: Traders Optimistic About Trump’s Return – How High Can BTC Soar?
Bitcoin’s price has hit its lowest level since late February, with on-chain analysts predicting a further 16% drop to $47,000 as the next bottom. This projection represents a 25% drop from the average purchase price of short-term Bitcoin holders, with significant capitulation expected among new market entrants at this level.
Bitcoin is currently trading at $56,374, reflecting a 20.73% decline over the past month. Analysts believe that these pullbacks are overdue and reminiscent of past corrections, such as the 60% drop during the COVID-19 panic in March 2020.
Joe Burnett, a former analyst at Blockware Solutions and senior product marketing manager at Unchained, predicts that Bitcoin market conditions will only ease when the sell-off pressure from Mt. Gox and Germany subsides. The crypto market is facing headwinds due to the anticipated Bitcoin sell-offs from these entities. Germany recently transferred 3,000 BTC to various exchanges and still holds 40,359 BTC, while Mt. Gox has moved $2.7 billion worth of Bitcoin in preparation for a $9 billion payout to creditors. This pressure has caused Bitcoin prices to drop to $53,550, their lowest in four months. Burnett suggests that large buyers may stabilize the market once the selling pressure decreases, potentially leading to a price recovery.
Despite these setbacks, analysts remain optimistic about a Trump victory leading to a significant rally for Bitcoin, potentially reaching $100,000 by Election Day. According to a report by the Financial Times on July 5, former President Donald Trump’s potential return to the White House is expected to trigger a surge in Bitcoin’s value. Various analysts believe that the concept of a “Trump trade” is gaining traction among crypto traders due to Trump’s perceived pro-crypto stance and policies.
Industry leaders are hopeful that a Trump administration, supported by a strong Republican presence in Congress, will create a more favorable regulatory environment for cryptocurrencies. Traders also note the impact of the bitcoin basis trade, where hedge funds use borrowed money to bet on the convergence of bitcoin futures and the spot bitcoin ETF, which helps dampen volatility.
Analysts believe that Trump’s energy policy proposals could benefit crypto mining firms, making it easier to use alternative energy sources for bitcoin mining. Conversely, Biden’s previous tax propositions on crypto miners, such as a 30% levy, are unlikely under a Trump administration. Trump’s policies could also create a scenario where the government deficit and debt grow so large that the central bank’s primary weapon, interest rate moves, has limited impact. This “fiscal dominance” could push Bitcoin’s price higher, as the cryptocurrency tends to correlate with key US Treasury markers.
Betting markets like Polymarket have seen substantial wagers on Biden withdrawing from the race, with over $11 million placed on this outcome. If Biden remains in the race, Bitcoin enthusiasts are likely to feel optimistic. However, Bitcoin’s momentum could stay low if Biden withdraws and a new candidate with a competitive edge against Trump steps in. According to Kendrick, Standard Chartered’s head of digital assets research, the most likely outcome is that Biden will run. This would increase the probability of Trump winning and push Bitcoin to a fresh all-time high in August, potentially reaching $100,000 by US Election Day.
Bitcoin Price Prediction
Bitcoin Price at a Crossroads: Bearish Sentiment Meets Oversold Signals
Bitcoin’s technical outlook on July 6th suggests cautious optimism. Currently trading at $57,944, a 2.97% increase, the cryptocurrency finds itself below a crucial pivot point of $60,000. This indicates a bearish bias, with immediate support resting at $56,500. If this level fails to hold, further declines could see Bitcoin testing subsequent support levels at $52,000.
However, there is hope for the bulls. A break above the $60,000 pivot point could ignite renewed bullish momentum, potentially propelling Bitcoin towards resistance levels at $67,000.
Possible Scenarios
1. Bearish Continuation: Failure to hold above $56,500 could trigger a decline to $52,000 or even lower, supported by bearish indicators like MACD.
2. Potential Rebound: Holding above $56,500 coupled with oversold RSI could attract buying pressure, pushing the price back towards $60,000. Consolidation above this level is crucial for a bullish reversal, potentially leading to a test of $67,000.
Overall Outlook
The coming days are crucial. A breach of the $56,500 support indicates significant downside risk. Conversely, stabilization and increased buying interest could pave the way for a recovery towards $60,000 and beyond.
Short-term: Cautiously bearish, with a focus on key support levels.
Mid-term: Potential for a rebound if oversold conditions attract buyers.
Long-term: Breaking above $60,000 and $67,000 resistance is necessary for sustained bullish momentum.
Pepe Unchained: A New Meme Coin on the Rise
While the cryptocurrency community closely watches Bitcoin’s movements, another crypto project has been gaining attention. Pepe Unchained (PEPU), a new meme coin, launched its presale two weeks ago and has already raised over $2 million, demonstrating significant support and enthusiasm from the community.
Pepe Unchained (PEPU) capitalizes on the popularity of the Pepe meme, which has been a staple of internet culture for years. The project aims to offer a fresh and exciting alternative in the meme coin market, addressing the shortcomings of the Ethereum network and positioning itself as a dominant player in the meme coin space. With a growing social media following and a successful presale, Pepe Unchained is attracting investors.
The PEPU ICO has raised over $2.4 million out of the $2.7 million soft cap target, with the figure continually growing. The token is priced at $0.0081288 and can be purchased with ETH, USDT, BNB, or credit/debit cards. Investors are encouraged to act quickly, as another price increase is scheduled soon.
Join the Pepe Unchained community on X and Telegram to stay up-to-date on the latest events and announcements. Visit Pepe Unchained’s website to buy $PEPU and join the movement to set Pepe loose!
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.