Bitcoin prices have fallen to their lowest since late February, with on-chain analysts predicting a further 16% drop to $47,000. This prediction represents a 25% drop in the average short-term Bitcoin holder purchase price expected at this level. There will be significant selling from new entrants to the market. Bitcoin is currently trading at $56,374, down 20.73% over the past month, with analysts pointing out that such a pullback is long overdue.
This is similar to the 60% plunge in March 2020 during the COVID-19 scare. Furthermore, Joe Burnett, a former Blockware Solutions analyst and senior product marketing manager at Unchained, predicted that Bitcoin market conditions will only ease when the selling pressure from Mt. Gox and Germany subsides.
The crypto market is facing significant headwinds due to the anticipated Bitcoin sell-off by these entities. Germany recently moved 3,000 Bitcoins to major exchanges and still holds 40,359 Bitcoins, while Mt. Gox has moved $2.7 billion worth of Bitcoins to prepare for $9 billion in creditor compensation.
This pressure caused the price of Bitcoin to fall to $53,550, its lowest level in four months. Burnett said once selling pressure eases, big buyers may stabilize the market, leading to a recovery in prices.
Despite these setbacks, analysts remain optimistic that a Trump victory could lead to a significant rise in Bitcoin, possibly reaching $100,000 before Election Day.
According to a report by the Financial Times on July 5, former President Donald Trump’s potential return to the White House is expected to trigger a significant surge in the value of Bitcoin.
Several analysts noted that the concept of “Trump trading” is gaining traction among crypto traders due to Trump’s perceived pro-crypto stance and policies.
Trump: Bitcoin advocate
Industry leaders hope that the Trump administration, backed by a strong Republican presence in Congress, will create a more favorable regulatory environment for cryptocurrencies. Traders have also noticed the impact of Bitcoin basis trading, which uses borrowed money from hedge funds to bet on the convergence of Bitcoin futures and spot Bitcoin ETFs, dampening volatility.
As markets look for the next catalyst, the concept of a "Trump deal" is gaining traction, especially after the recent presidential debate. Industry executives hope that a Trump White House and a strong Republican showing in Congress will make Washington more willing to pass clear and favorable encryption regulations.
Julius Baer analyst Manuel Villegas noted that Trump’s energy policy proposals could benefit crypto mining companies, making it easier to mine Bitcoin using alternative energy sources .
Conversely, Biden’s previous tax proposals for crypto miners, such as a 30% tax, are unlikely to be implemented under the Trump administration. Trump’s policies could cause government deficits and debt to grow so much that the central bank’s main weapon — changes in interest rates — will have limited impact. This “fiscal dominance” could drive Bitcoin prices higher, as the cryptocurrency tends to correlate with key U.S. Treasury indicators such as the 2-year and 10-year Treasury spread and the break-even rate.
The likes of Polymarket have seen significant bets placed on Biden exiting the race, with more than $11 million wagered on this outcome. Bitcoin enthusiasts may feel optimistic if Biden continues to run.
However, Bitcoin’s momentum could stall if Biden exits the race and a new, competitive candidate takes on Trump.
According to Kendrick, head of digital asset research at Standard Chartered Bank, the most likely outcome is Biden’s candidacy. This would increase the odds of a Trump victory and push Bitcoin to new all-time highs in August, potentially reaching $100,000 on U.S. Election Day.
Bitcoin Price Prediction
Bitcoin Price at a Crossroads: Bearish Sentiment Meets Oversold Signal
On July 6, Bitcoin’s technical outlook painted a cautiously optimistic picture. Bitcoin is currently trading at $57,944, up 2.97%, but remains below the key support level of $60,000.
This suggests a bearish bias, with immediate support at $56,500. If this level fails to hold, further declines could see Bitcoin test subsequent support at $52,000.
However, all is not lost for the bulls. A break above the $60,000 key could ignite fresh bullish momentum, pushing Bitcoin towards the $67,000 resistance.
Possible scenarios
Bearish continuation: Failure to hold $56,500 could trigger a drop to $52,000 or even lower, supported by bearish indicators such as MACD.
Potential bounce: Holding $56,500 and an oversold RSI could trigger buying pressure, pushing the price back above $60,000. Consolidation at this level is crucial for a bullish reversal, which could lead to a test of $67,000.
Overall outlook
The next few days are crucial. A break below the $56,500 support would indicate significant downside risks. Conversely, a stabilizing market and increasing buying interest could pave the way for a rebound towards $60,000 and above.
Short-term outlook: Cautiously bearish, focus on key support levels.
Medium-Term Outlook: A rebound opportunity could emerge if oversold conditions attract buying.
Long-term outlook: A break above the $60,000 and $67,000 resistances will be crucial for continued bullish momentum.
Pepe Unchained: A new memecoin on the rise
While the cryptocurrency community keeps a close eye on what’s going on with Bitcoin, another crypto project is making waves. Pepe Unchained (PEPU), a new meme coin, launched its presale two weeks ago and has already raised over $2 million, showing significant community support and enthusiasm for it.
Pepe Unchained (PEPU) capitalizes on the popularity of the PEPE meme, which has been a staple of internet culture for years.
The original Pepe coin became one of the top cryptocurrencies and the third-largest meme coin by market capitalization. However, the recent collapse in Pepe coin prices has made PEPU a better option for most traders.
Pepe Unchained aims to carry on this legacy and provide a fresh and exciting alternative in the memecoin market. It also seeks to address the shortcomings of the Ethereum network and position itself as a major player in the memecoin space. The project quickly attracted attention, raising $2 million in its pre-sale phase and amassing a growing social media following.
Currently having 5.1k followers on
Pepe Unchained has allocated 20% of its total supply of 8 billion PEPU tokens to the pre-sale, ensuring ample opportunity for new investors.
As of this writing, PEPU’s ICO has raised over $2.4 million, targeting a soft cap of $2.7 million, a number that continues to grow.
The token is priced at $0.0081288 and can be purchased using ETH, USDT, BNB or credit/debit cards. Investors are encouraged to act quickly as another price increase is expected soon.
Join the Community
Join Pepe Unchained’s communities on X and Telegram to stay informed about the latest events and announcements.
To purchase $PEPU, visit Pepe Unchained’s website, connect your wallet, and purchase using ETH, USDT, or BNB. Payment can also be made using bank cards.
Buy $PEPU now and join the movement to free Pepe!
Visit Pepe Unchained now: https://cn.cryptonews.com/ext/pepeunchained-cn/
Original article: https://cn.cryptonews.com/news/bitcoin-price-prediction-as-traders-bet-on-trumps-return-how-high-can-btc-go.htm
