Markets
Bitcoin Price Drops to $67K Despite Trump’s Pro-Crypto Statements. More Corrections Coming?
Crypto pioneer Bitcoin is down 1.13% over the past 24 hours, trading at $67,400. Despite US presidential candidate Donald Trump’s strong pro-crypto stance at the Bitcoin 2024 conference, the sell-off is causing market concern over the asset’s sustainability at a higher price. However, given the recent three-week rally, a small pullback over the weekend is justifiable and necessary to recover the exhausted bullish momentum.
Bitcoin Price Formation Suggests Breakout Opportunity Above $80,000
The medium-term trend Bitcoin Price remains a sideways trend amidst the formation of a bull flag pattern. This chart configuration is defined by two descending lines that are currently shaping the price trajectory providing dynamic resistance and support
On July 5, BTC witnessed a bullish reversal from the flag pattern at $53485, lifting its asset by 29.75% to reach a high of $69400. This recent peak followed the positive market sentiment towards the Donald Trump speech at the Bitcoin 2024 conference in Nashville on Saturday afternoon.
Bitcoin Price | Tradingview
In his speech, Trump outlined several pro-crypto initiatives: he promised to replace SEC Chairman Gary Gensler on his first day in office, to establish a strategic national reserve of Bitcoin if elected, to ensure that the U.S. government keeps all of its Bitcoin holdings and block any attempt to create a central bank digital currency (CBDC) during his presidency.
He further stated that under his leadership, Bitcoin and cryptocurrencies will skyrocket like never before.
Despite Donald Trump’s optimistic promises, the price of BTC has not reached $70,000 and currently stands at $67,400. As a result, the market capitalization of Bitcoin has fallen slightly, settling at $1.335 trillion.
However, this pullback is justifiable as Bitcoin price has recently seen significant growth over the past three weeks, which has significantly elevated market sentiment. Therefore, the price action over the weekend could restore the exhausted bullish momentum, potentially reinforcing a breakout attempt from the flag pattern at $70,130.
A successful breakout will signal the continuation of the uptrend and extend the BTC price forecast target at $78,000, followed by $84,000.
Conversely, if supply pressure on the upper trend line persists, the asset price could trigger new corrections for a couple of weeks or months.
Technical indicator:
- Pivot Levels: The traditional pivot indicator suggests that the price decline could meet immediate support at $64,400, followed by a minor correction to $56,700.
- Moving Average Convergence Divergence: A bullish crossover state between the MACD (blue) and the signal (orange) ensure that the recovery momentum is intact.
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Frequent questions
A CBDC is a digital form of fiat money issued and regulated by a country’s central bank. It is intended to provide a digital alternative to traditional banknotes.
Proposing a national strategic reserve of Bitcoin is an important endorsement of Bitcoin’s legitimacy and potential as a reserve asset. Such a move could position Bitcoin similarly to gold, potentially stabilizing its price and encouraging other nations to adopt similar strategies.
Conferences like Bitcoin 2024 are key platforms for networking, sharing knowledge, and showcasing new technologies in the cryptocurrency industry.