US presidential election campaign becomes growth driver for bitcoin price

During Monday's trading session, bitcoin prices showed a strong growth of more than 5%, reaching the level of 66,000 and the highs of late September. Today, the activity of the bulls has naturally decreased, but there are also not many of those willing to lock in profits on long positions. Unlike the last month's situation, now the technical picture does not prevent even greater price growth of the main cryptocurrency. Buyers can target the July tops just above the 68,000 level.

The surge in bitcoin was sparked by yesterday's speech from US presidential candidate Kamala Harris. For the first time during her election campaign, she drew attention to this topic, promising to facilitate the creation of a regulatory framework for the legal functioning of the cryptocurrency market. By doing so, Harris is trying to attract to her side participants of the cryptocurrency community, who have a negative attitude towards the current administration of the country. Similar steps were previously made by Donald Trump.

Analysts surveyed by Bloomberg point out another factor that provided bitcoin with a significant increase in price. The bankrupt Mt. Gox exchange postponed the deadline for returning the cryptocurrency to its customers for a year, until October 31, 2025. Arkham Intelligence estimates that Mt. Gox still has nearly $3 billion worth of bitcoins and other coins on its balance sheet. Therefore, those assets will remain locked up for the time being, eliminating the risk of a surge in supply in the cryptocurrency market.

Caroline Mauron, co-founder of Orbit Markets, believes that the reason for bitcoin's rise in price is the new stimulus measures in China. Experts were disappointed with the proposed reforms in recent days, but for cryptocurrencies this could turn out to be a favorable factor. According to Mauron, investors may withdraw funds from the stock market in China and get involved in cryptocurrencies in search of higher returns. She also notes the seasonally favorable dynamics of bitcoin prices in the second half of October.

The RSI indicator on the daily chart of bitcoin has moved to growth, but is still very far from the overbought zone. In this regard, the price growth potential is still there, and purchases can be continued at least up to the level of 68,000.

We can offer the following variant of trading strategy:

Buy BTCUSD at the current price. Take profit – 68000. Stop loss – 63000.