TLDR
- The Bitcoin price fell to near $53,500 in early July before rebounding to around $62,500-$63,000.
- The recent price surge comes after an assassination attempt on former President Donald Trump, who expressed support for cryptocurrencies.
- Analysts suggest that the worst of the recent price decline may be over, with factors such as the German BTC sell-off and Mt. Gox redemption largely priced in.
- Positive macroeconomic factors, including potential interest rate cuts and low inflation, could support Bitcoin prices going forward.
- While some analysts see further price gains ahead, others warn that the uptrend could be gradual.
Bitcoin’s price has rebounded significantly in recent days, reclaiming the $62,000 mark after falling to near $53,500 in early July. The world’s largest cryptocurrency by market cap is currently trading near $62,550 on Monday, up more than 5% over the past 24 hours.
The price increase comes after an assassination attempt on former US President Donald Trump during a campaign rally in Pennsylvania.
President Trump, who has recently expressed support for cryptocurrencies and is known to have received campaign contributions in cryptocurrencies, suffered minor injuries in the attack.
Some analysts have suggested that this incident could increase the likelihood of President Trump running for president in the upcoming election, which could be seen as a positive development for the cryptocurrency industry given his support for cryptocurrencies.
Ben Simpson, founder of cryptocurrency education platform Collective Shift, believes Bitcoin may have found a “local bottom” and could be headed for an uptrend.
Simpson pointed to several factors that have influenced the Bitcoin price, including the German government’s nearly $3 billion selloff and negative sentiment surrounding the repayment of about $8.5 billion to Mt. Gox creditors.
He says most of this selling pressure has now been absorbed by the market.
Going forward, analysts are watching out for several potential catalysts for Bitcoin prices: Federal Reserve Chairman Jerome Powell has hinted at a possible interest rate cut in the near future.
The S&P 500 is hitting new highs, which some see as a positive sign for riskier assets like Bitcoin. Strong inflows into Bitcoin ETFs have also been observed, indicating continued institutional interest.
Macroeconomic factors also influence Bitcoin price movements. Recent lower-than-expected U.S. inflation figures have raised expectations that the Federal Reserve may cut interest rates starting in September.
An environment where these monetary policies can be more flexible could be beneficial for Bitcoin and other cryptocurrencies.
However, some experts warn that Bitcoin’s price move upwards could be gradual rather than sudden. Mark Hiriatt, head of sales at crypto asset manager Zerocap, suggests that Bitcoin needs to hold the $60,000 level for a sustained period to turn from resistance to support.
He also argued that Bitcoin needs to reclaim its 50-day and 100-day moving averages to rally above $65,000.
The possibility of additional Mt. Gox Bitcoin redemptions remains a factor to watch. While some analysts believe the impact is largely priced in, others warn that there could still be some selling pressure as creditors receive their long-awaited funds.
From a technical analysis perspective, Bitcoin is showing positive signals. The cryptocurrency is trading above the 100-hour SMA and has a bullish trend line forming, with support near $61,000. Resistance levels to watch are $62,500 and $63,500, while support can be found near $61,500 and $61,000.
