The pioneer cryptocurrency Bitcoin records a 1.13% drop in the last 24 hours to trade at $67400. Despite a strong pro-crypto stance from U.S. Presidential candidate Donald Trump at the Bitcoin 2024 conference, this sell-off creates market concern for the asset’s sustainability for a higher price. However, considering the recent three-week rally, a minor pullback on the weekend is justifiable and needed to recuperate the exhausted bullish momentum.
Bitcoin Price Flag Formation Hints Breakout Opportunity past $80K
The mid-term trend in Bitcoin price remains a sideways trend amid the formation of a bull flag pattern. This chart setup is defined by two downsloping lines that are currently shaping the price trajectory by providing dynamic resistance and support
On July 5th, the BTC witnessed a bullish reversal from the flag pattern at $53485, uplifting its asset 29.75% to hit a high of $69400. This recent peak followed the positive market sentiment towards the Donald Trump speech at the Bitcoin 2024 conference in Nashville on Saturday afternoon.
In his speech, Trump outlined several pro-crypto initiatives: he vowed to replace SEC Chairman Gary Gensler on his first day in office, establish a strategic national Bitcoin reserve if elected, ensure that the U.S. Government retains all its Bitcoin holdings, and block any attempts to create a central bank digital currency (CBDC) during his presidency.
He also asserted that under his leadership, Bitcoin and cryptocurrencies will skyrocket like never before.
Despite Donald Trump’s optimistic promises, the BTC price fell short of reaching $70,000 and is currently trading at $67,400 Consecutively, the Bitcoin market cap plunged slightly to waver at $1.335 Trillion.
However, this pullback is justifiable, as Bitcoin price has recently seen significant growth over the past three weeks, which has greatly elevated market sentiment. Thus, the price action over the weekend could replenish the exhausted bullish momentum, potentially bolstering a breakout attempt from the flag pattern at $70,130.
A successful breach will signal the uptrend continuation and extend the BTC price forecast target to $78000, followed by $84000.
On a contrary note, if the supply pressure at the overhead trendline persists, the asset price may spark fresh corrections for a couple of weeks or months.
Technical Indicator:
- Pivot Levels: The traditional pivot indicator hints the price pullback could witness immediate support at $64400, followed by a correction floor at $56700.
- Moving Average Convergence Divergence: A bullish crossover state between the MACD (blue) and signal (orange) assures the recovery momentum is intact.
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Frequently Asked Questions
A CBDC is a digital form of fiat money that is issued and regulated by a country’s central bank. It is intended to provide a digital alternative to traditional banknotes.
Proposing a strategic national Bitcoin reserve is a major endorsement for Bitcoin’s legitimacy and potential as a reserve asset. Such a move could position Bitcoin similarly to gold potentially stabilizing its price and encouraging other nations to adopt similar strategies.
Conferences like Bitcoin 2024 serve as pivotal platforms for networking, knowledge sharing, and showcasing new technologies within the cryptocurrency sector.
Read More: Bitcoin Price Dips to $67K Despite Pro-Crypto Remarks from Trump, More Correction Ahead?
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