Bitcoin Price Prediction: How Biden's debt relief program could trigger the next BTC rally

Bitcoin price macro potential is still very much intact. As a response to President Biden’s debt relief program, investors may finally exercise bravery in the free markets once again.

Will Bitcoin price get a bid?

Bitcoin price has witnessed a shocking wave of positive market sentiment as President Biden has announced a college debt forgiveness program. According to the White House, the US federal government “will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education and up to $10,000 to non-Pell Grant recipients”.

 The generous offering from the POTUS will alleviate and assist nearly 45 million Americans net income, and in theory should promote more liquidity into the free markets like cryptocurrencies, real estate, stocks and bonds.

Source- Whitehouse.gov

Since the cataclysmic cryptocurrency sell-off that took place in 2021, analysts at FXStreet have issued several technichal forecasts o shed light on Bitcoin's macroeconomic potential. As of August 25, the Bitcoin price is trading, at the time of writing, at $21,657, just a 38% reduction from the all-time highs at 69,000 based on the logarithmic chart. 

Elliott Wave theory suggests that the BTC price is within a wave-4, with wave-5 price targets conservatively between $80,000 and $120,000. Based on previous Bitcoin bull-runs, the next rally is likely to extend and blow past those targets. 

BTC/USDT 1-Week Chart

Many investors believe that a Bitcoin market bottom could be in place. The technicals confound this possibility as BTC price hovers above a historical Elliot Wave Trend channel, which has played a significant role on the Bitcoin price since 2019. This is a hallmark signal for a market bottom, as many markets have produced similar signs prior to a blow-off-top style bull run. 

With optimism pouring in, inflation tapering, and President Biden freeing up capital for the average middle-class American, sidelined high-cap investors may finally begin to exercise bravery in the free markets once again. A Bitcoin bullrun is certainly a bragging right to help win millennials and Gen-Z’s vote in an upcoming re-election.

Source- Whitehouse.gov

Nonetheless, markets are always evolving and you can never be 100% sure that the bottom is truly defined until retrospect. Thus, a dollar cost average approach is the safest way to approach investing in the Bitcoin price. Invalidation of the bull run scenario is dependent on $13,880 remaining untouched in the future. 

In the following video, our analysts deep-dive into Bitcoin's price action, analyzing key levels of interest in the market - FXStreet Team