Bitcoin breaks $60,000 as market anticipates re-election of pro-crypto former President Trump
- Bitcoin trades above $60,000 on Sunday as market participants rally in support of former President Donald Trump.
- The US Presidential candidate made headlines after being shot at a rally, the event garnered the support of the crypto community.
- BTC could extend gains and erase July losses, eyes a comeback above $63,000.
Bitcoin extended gains post the shooting at the rally of US Presidential candidate Donald Trump. The former President is a pro-crypto candidate and a report by Fortune shows that Trump’s chances of winning the race increased following the events that transpired on Saturday.
Bitcoin rallied to a peak of $60,324, a 10-day high for the largest asset by market capitalization.
Bitcoin rallies as traders expect pro-crypto candidates win
Data from on-chain tracker Santiment shows that as US Presidential elections near, the crypto community has shown bullish responses to Trump-related news and comments across social media platforms. This is likely due to the former US President’s pro-crypto stance.
Santiment analysts note that the crypto market is expected to respond with higher volatility and traders expect similar gains as the one post the debate that favored Presidential candidate Trump, in June.
Former President Trump’s mentions and Bitcoin, crypto prices
Santiment analysts say US political news drives gains in crypto since it is a “speculatively-driven” sector.
Institutions are bullish on Bitcoin
The sentiment on crypto Twitter and among retail investors has been one of “panic,” however, QCP Capital reports that large hedge funds are “aggressively buying Bitcoin.” The digital assets trading and market making firm has identified institutions buying December and March calls, with a target of the $100,000 to $120,000 level for Bitcoin.
The macro sentiment is positive, per QCP’s analysts and they are quoted saying “inflation is slowing down.” The market has priced a 95% chance of a rate cut in September, aligned with gains in Bitcoin and cryptocurrency prices.
Bitcoin could extend gains, rally to $63,000
Bitcoin is in an upward trend, forming higher highs and higher lows since July 8, as seen in the BTC/USDT daily chart below. Bitcoin rallied to its 10-day high on Sunday, up to $60,324, on Binance.
The momentum indicator, Moving Average Convergence Divergence (MACD) supports the gains in Bitcoin. The MACD line crossed above the signal line and the green histogram bars above the neutral line, signal a positive underlying momentum in Bitcoin price.
BTC could extend gains by nearly 6% and hit $63,631, the 50% Fibonacci retracement level of the decline from the March 14 peak of $73,777 to the July 5 low of $53,485.
BTC faces resistance at the upper boundary of the Fair Value Gap (FVG) at $61,806.
BTC/USDT daily chart
Bitcoin could find support at $60,000 and the July 12 low of $56,542.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
