Trump Writes the Script for Bitcoin
Exciting prospects are opening up for Bitcoin after the former U.S. President Donald Trump, and the Republican frontrunner for the seat in the White House, addressed the largest crypto conference of this year in Nashville on the weekend. He backed up the essential need of setting up a "strategic national Bitcoin stockpile" to "never sell" the government's Bitcoins. Several days before the event, crypto adepts (or whistleblowers?) have begun to speculate that Trump was going to make an announcement of this kind, even though it marked a 180-turn from his publicly expressed opinion about Bitcoin as being "based on thin air", which was exactly Trump's original sentence from nearly 5 years ago.
As for July 2024, the same Trump proclaimed the U.S. as the future "crypto capital of the planet" in order to protect "property rights, privacy, freedom of transaction, freedom of association and freedom of speech”. "I want it to be mined, minted and made in the U.S", he declared while promising a "comprehensive" policy to cover all aspects like stablecoin regulation and the private right to self-custody Bitcoins and calling digital assets as "the steel industry of 100 years ago". "If we don't do it, China will do it', Trump argued, adding that "one day it probably will overtake gold", as "there's never been anything like it". More than this, Trump also said he is going to stop and end any efforts of creating the Federal Reserve's digital currency. This sounds like he would see Bitcoin as a partial substitute for the U.S. Dollar, at least in financing the country's budget and debt. Another quote is that Bitcoin regulations would be prepared by "people who love your industry, not hate your industry”. Trump fans wore "Make Bitcoin Great Again" hats. Following Donald Trump’s speech, republican senator Cynthia Lummis proposed a legislation with a task for the Federal Reserve of creating a one million Bitcoin reserve during the next five years. These Bitcoins are the equivalent of more than $60 billion now, and "will be held for a minimum of 20 years" with a purpose of "reducing our debt,” she commented. So, what can I say about the sentiment on Bitcoin as a response to the news? The "buy expectations, sell facts" maxima worked out again, so that BTC/USD briefly exceeded $69,000 but then dipped below $67,000 soon after Trump’s speech, and recovered to $69,700 early Monday. This was a natural behaviour from the technical point of view. Thus, I expect developing a consolidation pattern slightly below or around $70,000 on daily charts with a strong support area border between $57,000 and $60,000 as the basis scenario, with probably no immediate jumping higher to set new historical records, yet rather accumulating the strength for one week or even one month.
I surely would buy Bitcoins as close to $60,000 as possible, if the market allows it. However, I see a breakthrough chance well above $70,000 as the next move, and it may happen even ahead of a slow schedule. If so, I would not hesitate to purchase more of BTC/USD at the very first price appearance above $70,500. Bulls' attack could be marked and then postponed but not cancelled in this case. Anyway, most of the market participants would not seriously suppose the price coming down below $50,000 once again, based on "great leap forward" hopes. The last two dozens of weeks are seemingly creating the flag cloth formation to foresee a wake-up call for further growth at the end, with a flagpole extending from $40,000 to above $70,000, meaning a potential target price around $100,000. The move of autumn 2023 may repeat itself, but at higher levels.
The last, but not the least thing here is that short-term technical patterns' analysis in nearest days could serve as the only magic to clarify relative probabilities of the two major paths for BTC/USD described above. So, one may do a great job by watching small-scale charts carefully.
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