Bitcoin Price Analysis: Biden Announcement to Drive $70k Rally?
thecryptobasic.com 22 July 2024 19:40, UTC Bitcoin price reached a 30-day peak of $68,457 on Monday July 22, 2024 as BTC markets reacted to crypto-friendly Donald Trump stretching his lead further after Biden bows out of the Presidential re-election race.
Biden Announcement Sends BTC Price to 30-Day Peak
After surviving a mild correction scare on Friday July 19, Bitcoin price entered another uptrend over the weekend, following a dramatic twist in the US Presidential Elections race.
On July 21, US President Joe Biden announced a decision to stand down from the 2024 re-election race. Investors anticipate that this move could further tilt the market momentum in favor of Donald Trump, a self-acclaimed crypto-friendly candidate.
Consequently, Bitcoin experienced considerable buying pressure over the weekend, along with the rest of the crypto markets.
Bitcoin price slid to a daily time frame bottom of $63,294, amid intense market volatility on Friday July 19. However, following Biden’s announcement on Sunday, Bitcoin price climbed 8.28% to reach $68,477, as US markets opened on Monday, July 22.
Notably, $68,477 is the highest Bitcoin price has traded in over 30-days dating back to June 10. This shows that US-based investors are taking bullish positions on BTC, as Trump stretches his lead further ahead of the Presidential Elections slated for November 2024.
More so, as the Bitcoin 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 aggregate valuation of the broader crypto market increased 7.74% (~$175 billion) during the last 72-hours.
During Biden’s administration, US authorities have been locked in long-running legal battles with various crypto entities, including Ripple, Binance, Coinbase, Uniswap, to name a few. The administration has also secured convictions of top personalities including Sam Bankman-Fried and Binance Co-founder/CEO, Changpeng Zhao.
Unsurprisingly, the positive market reaction over the weekend suggests that investors interpret that a Donald Trump presidency could potentially offer a more favorable regulatory landscape for the broader crypto markets, than what the sector has experienced under the Biden
If this growing narrative persists, it could build up a strong resistance buy-wall preventing dramatic corrections in the short-term, as Bitcoin price edges closer to the $70,000 milestone.
BTC Price Forecast: $70k Target Now in Sight
Bitcoin price action over the last 72-hours indicates a significant upward trend, having recovered strongly from its recent lows. The price has climbed back above the 9-day Arnaud Legoux Moving Average (ALMA) of $67,117.61, suggesting a short-term bullish momentum.
More so, 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 can break through this resistance, the next significant target would be $70,000, which aligns with 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 three-day gain of 8.28%, as highlighted on the chart, further supports 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 a failure to maintain this level might result in a retracement to the support zones mentioned.
Overall, while the technical indicators suggest a bullish trend with a $70,000 target in sight, traders should watch for potential resistance at $68,000 and monitor the support levels closely to manage their positions effectively.
