TLDR
- Bitcoin’s price rebounded to around $62,500-$63,000 after falling to lows near $53,500 earlier in July.
- The price increase came after an assassination attempt on former President Donald Trump, who has expressed support for cryptocurrencies.
- Analysts suggest the worst of the recent price decline may be over, with factors like German BTC sales and Mt. Gox repayments largely priced in.
- Positive macroeconomic factors, including potential interest rate cuts and lower inflation, may support Bitcoin’s price going forward.
- Some analysts see potential for further price increases, while others caution that upward movement may be gradual.
Bitcoin’s price has rebounded significantly in recent days, climbing back above the $62,000 mark after falling to lows near $53,500 earlier in July. The world’s largest cryptocurrency by market capitalization was trading around $62,550 as of Monday, representing a gain of over 5% in the past 24 hours.
The price increase comes in the wake of an assassination attempt on former U.S. President Donald Trump during a campaign rally in Pennsylvania.
Trump, who has recently expressed support for cryptocurrencies and reportedly accepts campaign donations in crypto, sustained minor injuries in the attack.
Some analysts suggest that the incident may boost Trump’s chances in the upcoming presidential election, which could be seen as a positive development for the crypto industry given his pro-crypto stance.
Ben Simpson, founder of crypto education platform Collective Shift, believes that Bitcoin may have found its “local bottom” and could be headed for an uptrend.
Simpson pointed to several factors that had been weighing on Bitcoin’s price, including nearly $3 billion in sales from the German government and negative sentiment surrounding approximately $8.5 billion in Mt. Gox creditor repayments.
He suggests that much of this selling pressure has now been absorbed by the market.
Looking ahead, analysts are eyeing several potential catalysts for Bitcoin’s price. Jerome Powell, Chair of the Federal Reserve, has hinted at the possibility of lowering interest rates in the near future.
The S&P 500 stock index has been reaching new highs, which some see as a positive sign for risk assets like Bitcoin. Strong inflows into Bitcoin ETFs have also been observed, indicating continued institutional interest.
Macroeconomic factors are playing a role in Bitcoin’s price movements as well. Recent U.S. inflation figures came in lower than expected, boosting expectations that the Federal Reserve may start cutting interest rates as soon as September.
This environment of potentially easier monetary policy could be supportive for Bitcoin and other cryptocurrencies.
However, some experts caution that any upward price movement for Bitcoin may be gradual rather than sudden. Mark Hiriart, head of sales at crypto asset manager Zerocap, suggests that Bitcoin needs to consistently hold above the $60,000 level to flip it from resistance to support.
He also notes that Bitcoin would need to reclaim its 50-day and 100-day moving averages before pushing higher towards $65,000 and beyond.
The potential for further Mt. Gox Bitcoin repayments remains a factor to watch. While some analysts believe the impact has largely been 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 some positive signs. The cryptocurrency is trading above its 100-hour Simple Moving Average, and a bullish trend line has formed with support near $61,000. Resistance levels to watch include $62,500 and $63,500, while support can be found around $61,500 and $61,000.
