Bitcoin price prediction: BTC, the most prominent cryptocurrency with a market cap of over $1 trillion, is currently bouncing off an important support at $50,800. Weakening demand kept Bitcoin below the liquidity-rich level at $53,000, resulting price doldrums. However, with this key support holding, bulls have another chance at attempting a breakout toward $58,000 to complete what has come to be known as a pre-halving rally.
This bullish outlook towards the end of the European business hours on Friday is taking place amid headlines of former US President and the Republican front-runner, Donald Trump’s comments on Bitcoin.
Bitcoin Has “Taken A Life Life Of Its Own” – Donald Trump
The US election later next year is expected to have an impact on the crypto market, especially Bitcoin. In the recent election in 2020, BTC price surged by 243% starting on election day.
Industry leaders like Cathie Wood and Balaji Srinivasan have referred to the 2024 election as a “Bitcoin election,” with candidates expected to cozy up to the crypto to gain mileage in their campaigns.
The Republican front-runner’s statement to Fox News during a town hall event in South Carolina on Tuesday affirmed the narrative, saying that Bitcoin has “taken a life of its own.” Trump also said that Bitcoin will need to be regulated.
“A lot of people are doing it (Bitcoin),” but “I always liked one currency… I like the dollar,” Trump added.
Trump also insinuated towards having “some regulation” because “many people are embracing it (BTC).”
Bitcoin Price Prediction: Where Is BTC Heading As Technicals Falter
Bitcoin gained some strength from support at $50,800 after Trump’s comments but the uptrend appears to be weakening above $51,000.
Positioned below the 20-day Exponential Moving Average (EMA) and the 50-day EMA (the blue and red line on the four-chart), BTC screams volatility with more downside action expected heading into the weekend.
If the decline continues, Bitcoin price could fall to retest support at $50,800. Breaking this area could be detrimental not only for BTC but also for altcoins which are likely to retrace more.
The impressive performance of Bitcoin ETFs over the last few weeks is a factor that must be considered before calling Bitcoin’s next major retracement. ETF Data by SoSoValue highlights a massive $5.39 billion in cumulative total net inflow, with $251 million in daily total net inflow coming in on Thursday.
With the ETF performing better, it means sentiment is positive among investors both institutional and retail. Those seeing the long-term outlook of Bitcoin are unlike to sell due to the dips, considering halving is around the corner.
Hence, dips are increasingly becoming profitable with traders and investors scooping positions both short-term and long-term.
The Relative Strength Index (RSI) is neutral but still dropping toward the oversold region, suggesting that sellers have the upper hand, at least for now.
Traders should closely monitor key levels like support at $50,800. Consecutive four-hour candle closes below may validate a swing toward the major support at $50,800.
However, reclaiming $52,000 as a support area could assure investors that the uptrend is intact. Such a move would also mean that Bitcoin has the potential to successfully retest the $53,000 resistance and begin the phase recovery to $58,000 before halving.
Related Articles
Read More: Bitcoin Price Prediction: Will BTC Pump Or Dump This Weekend As Trump Hints At Crypto
Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. NewsOfBitcoin.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.