Bitcoin quotes last week continued to recover from the lows of early July. In less than 3 weeks, the main cryptocurrency's price soared by almost 30%, and at Tuesday's trading session, buyers' desire to fix at least part of the profit gained is noticeable. Technical indicators also speak in favor of a pullback closer to the level of 64 000, where the build-up of long positions will become more appealing. After that, the bulls' target will be a return to the 70 000 mark and the tops of the early summer.
The main driver of Bitcoin's recent rally has been the development of the US election campaign. Donald Trump's rising chances of a new presidential term have led to a noticeable revival among cryptocurrency market participants. Particular attention will be focused on Trump's speech at the Bitcoin 2024 conference in Nashville, scheduled for July 27. During his previous speeches, the 45th President of the United States promised to greatly simplify regulation of cryptocurrencies.
Bloomberg analysts see an increase in activity on the futures market of contracts on cryptocurrencies. According to their data, the number of transactions with a target price of $100 000 per Bitcoin and the date of execution in December has increased significantly in recent weeks. Therefore, a large number of traders are expecting a strong rally in cryptocurrencies at the conclusion of the U.S. elections in November. Chris Weston, head of research at Pepperstone Group, calls overcoming the 70 000 level the next step to strengthen Bitcoin's position.
Meanwhile, ETFs for the major cryptocurrency received another $1.27 billion over the past week. In total, over the past 4 weeks, the inflow of funds into exchange-traded funds exceeded $3.1 billion. CoinShares experts note investors' desire to redeem the drawdown of the first half of the summer. It is likely that in the remaining 3 months before the presidential elections in the United States, there will be no more such waves of Bitcoin price decline, which strengthens demand of market participants.
The RSI and Stochastic indicators on the daily Bitcoin chart reflect strong overbought and high probability of correction. The price pullback can be used for more profitable purchases in anticipation of a further rise to the level of 70 000.
The following trading strategy may be offered:
Buy BTCUSD on a decline to the level of 64 000. Take profit – 70 000. Stop-loss – 62 000.
This content is for informational purposes only and is not intended to be investing advice.
