Crypto Outlook: BTC takes aim for $70,000 per coin

Since our last report, the bullish momentum driving Bitcoin’s price appears to have re-emerged. Crypto bulls seem to have increased their aggressiveness, with strengthening appearing from the bulls who now seem to have regained control over the coin’s direction. In this report, we aim to shed light on the possible factors aiding to the recent developments in combination with a technical analysis of Bitcoin.

Crypto: Overview Report

Strategic Bitcoin reserve? 

In a surprise turn of events, Former President Trump has announced that if he returns to the White House, he would ensure that the federal government does not sell any off its bitcoin holdings.

In particular, Former President Trump stated per Yahoo finance that “If I am elected it will be the policy of my administration, the United States of America to keep 100 percent of all the bitcoin the U.S. government currently holds or acquires into the future”.

The announcement by Presidential hopeful Trump appears to be an appeal to the crypto crowd, as the US Presidential race is heating up with Vice President Harris now taking over the reigns as the presumptive Democratic party’s presidential nominee following Biden’s decision to step aside.

Nonetheless, following Trump’s comments, Senator Cynthia Lummis (R-WY) announced her legislative proposal to ammas an official federal reserve of 1 million BTC over five years, which will be held for a minimum period of 20 years and may only be used to reduce the US debt. Overall, it would appear that the applications of cryptocurrencies and Bitcoin in particular, seem to have taken root in potential voters and that is now being seen by Politicians who may be attempting to court this voter base as the US Presidential election nears.

However, unless law’s are passed to support the aforementioned comments, they remain at the time of this report as ‘comments’ not legislation, hence any positive market optimism may be temporary. In conclusion, the possibility of a strategic bitcoin reserve from the US Government may boost market optimism for Bitcoin’s price and thus may support the coin’s price in the long run, should more crypto-friendly politicians emerge. Yet a failure to see a transition to a legislative agenda that has the votes to pass into law, may weigh on Bitcoin’s price. 

Lastly, we would also like to note this week’s upcoming ICOs:

Crypto Technical Analysis

BTC/USD Daily Chart

• Support: 63680 (S1), 60000 (S2), 56200 (S3)  
• Resistance: 70000 (R1), 73200 (R2), 76500 (R3)   

BTC/USD appears to be moving in a upwards fashion. We opt for a bullish crypto outlook for the coin and supporting our case is the upwards moving trendline which was incepted on the 8^th June, in addition to the RSI indicator below our chart which currently registers a figure near 70 implying a strong bullish market sentiment.

For our bullish outlook to continue we would require a clear break above the 70000 (R1) resistance level, with the next possible target for the bulls being the 73200 (R2) resistance ceiling. On the flip side, for a sideways bias we would require the coin’s price to remain confined between the 63680 (S1) support level and the 70000 (R1) resistance line.

Lastly, for a bearish outlook we would require a clear break below the 63680 (S1) support line with the next possible target for the bears being the 60000 (S2) support base.

Disclaimer:
This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

Peringatan Risiko:

Crypto CFDs are an extremely high-risk, speculative investment and you may lose all your invested capital. Before trading, you need to ensure you fully understand the risks involved taking into consideration your level of experience and investment objectives. Seek independent advice, if necessary.

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