Bitcoin Price Forecast: Traders Anticipate Trump’s Return and Predict BTC Surge
Bitcoin’s price has reached its lowest point since late February, and on-chain analysts are 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, and new market entrants are expected to capitulate at this level.
With Bitcoin currently trading at $56,374, which reflects a 20.73% decline over the past month, analysts believe that these pullbacks are overdue and resemble past corrections, such as the 60% drop during the COVID-19 panic in March 2020.
Joe Burnett, a former Blockware Solutions analyst 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 has 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 selling pressure has caused Bitcoin prices to drop to $53,550, their lowest in four months. Burnett suggests that once the selling pressure decreases, large buyers may stabilize the market, leading to a potential price recovery.
Despite the setbacks, analysts remain optimistic that a Trump victory in the upcoming election could trigger a significant rally for Bitcoin, potentially reaching $100,000 by Election Day. According to a report by the Financial Times on July 5, 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.
The impact of the bitcoin basis trade is also being noted, where hedge funds use borrowed money to bet on the convergence of bitcoin futures and the spot bitcoin ETF, dampening volatility. As the market searches for the next catalyst, the “Trump trade” idea is gaining traction, especially following recent presidential debates. Industry executives hope that a Trump White House and strong Republican showing in Congress will mean Washington is more amenable to passing clear and favorable crypto regulations.
Analysts also believe that Trump’s energy policy proposals could benefit crypto mining firms by 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. Furthermore, Trump’s policies could 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.
While Bitcoin’s price remains uncertain, there is a growing belief that a Trump victory would have a positive impact on the cryptocurrency market. Traders are closely watching the upcoming election and its potential effects on Bitcoin’s value.
Bitcoin Price Forecast
Bitcoin’s technical outlook on July 6th suggests cautious optimism. Currently trading at $57,944, a 2.97% increase, Bitcoin finds itself below a crucial pivot point of $60,000, indicating a bearish bias. Immediate support is at $56,500, and further declines could see Bitcoin testing subsequent support levels at $52,000. However, 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, and a breach of the $56,500 support indicates significant downside risk. On the other hand, stabilization and increased buying interest could pave the way for a recovery towards $60,000 and beyond. In the short term, the outlook is cautiously bearish with a focus on key support levels. In the mid-term, there is potential for a rebound if oversold conditions attract buyers. In the long term, breaking above $60,000 and $67,000 resistance levels is necessary for sustained bullish momentum.
Pepe Unchained: A Rising Meme Coin Project
While Bitcoin’s movements are closely watched, another crypto project called Pepe Unchained (PEPU) has been gaining attention. PEPU, a new meme coin, launched its presale two weeks ago and has already raised over $2 million, demonstrating significant support from the community.
PEPU capitalizes on the popularity of the Pepe meme, offering a fresh and exciting alternative in the meme coin market. It aims to address the shortcomings of the Ethereum network and position itself as a dominant player in the meme coin space. The project has quickly gained attention, reaching $2 million in its presale and amassing a growing social media following.
Investors can participate in the PEPU presale, with 20% of the total supply of 8 billion PEPU tokens allocated to this phase. The token is priced at $0.0081288 and can be purchased with ETH, USDT, BNB, or credit/debit cards. The PEPU ICO has already raised over $2.4 million out of the $2.7 million soft cap target. Investors are encouraged to act quickly as another price increase is scheduled soon.
To stay updated on the latest events and announcements, join the Pepe Unchained community on X and Telegram. To buy $PEPU, visit Pepe Unchained’s website, connect your wallet, and make a purchase using ETH, USDT, or BNB. Bank card payments are also available.
Disclaimer: Cryptocurrency is a high-risk asset class, and this article is provided for informational purposes only and does not constitute investment advice. You could potentially lose all of your capital.
