Bitcoin has kicked off the new week with a remarkable surge, hitting previously unseen levels. The cryptocurrency has experienced a 12% increase over the past week, pushing its price to near resistance levels. The question remains whether the bullish momentum can sustain itself after a prolonged period of consolidation over the past four months.
Could Bitcoin Continue to Surge?
Last week, Bitcoin’s price closed above $68,000, marking a significant milestone. This boost came in the wake of U.S. President Joe Biden’s decision not to seek re-election. Despite some fluctuations, data from TradingView indicates that BTC/USD reached $68,486, its highest point since June 12, just 7.75% shy of its all-time high. The trader Skew noted the bullish trend, emphasizing the importance of maintaining at least $65,000 as support to keep the momentum.
Why is U.S. Political Climate Important?
The announcement from President Biden has led to increased market expectations of a Republican win in the upcoming elections, particularly with Donald Trump’s pro-Bitcoin stance. Attention has now shifted to economic data, especially the U.S. core inflation data. The Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred inflation measure, is slated for release on July 26, following the second-quarter GDP and unemployment figures.
Key Insights for Investors
For those eyeing Bitcoin’s market movements, here are some critical takeaways:
- Maintaining a support level of $65,000 is essential for sustaining the bullish trend.
- $70,000 to $80,000 liquidity targets could be next if the bullish momentum continues.
- Keep an eye on U.S. core inflation data and PCE Index releases for potential market volatility.
- Fibonacci extension levels can offer insight into possible price targets.
The latest CME Group’s FedWatch forecasts suggest no changes in interest rates until the next Federal Open Market Committee (FOMC) meeting in September. This could potentially provide a stable environment for Bitcoin to continue its upward trajectory.
