It was a week before Donald Trump’s speech at the Bitcoin 2024 meeting, and less BTC was lost. This week’s losses were mostly made up by Bitcoin (BTC) on July 26, when traders were preparing for the big speech that former President Donald Trump would give at the BTC 2024 meeting in Nashville on July 27.
The cryptocurrency also gained value because people looked forward to important U.S. inflation figures showing when the Federal Reserve might cut interest rates.
Bitcoin’s price rose 2.56% to around $67,480 on July 26, breaking through the weekly low of about $64,425 set the day before. This is a 6.40% increase.
There is a lot of talk on social media that Trump might promise to set up a Bitcoin Reserve Policy in the U.S. if he gets reelection in November. The fact that the world’s largest economy might buy Bitcoin makes the market feel better. “Nobody wants to short Bitcoin into the weekend,” said Markus Thielen, CEO of 10x Research.
Since the July 13 attempt on Trump’s life, the price of Bitcoin has gone up by over 16.50%. This has made it more likely that he will win the next election.
The price of Bitcoin went up today before the U.S. Personal Consumption Expenditures (PCE) figures came out. PCE is the Federal Reserve’s preferred measure of inflation.
Bitcoin Eyes $68,350 As Core PCE Index Rises
The core PCE Price Index, which doesn’t include volatile prices for things like food and energy, is projected to rise by 0.1% month-over-month in June, the same amount as it grew in May. They think the PCE Price Index will increase by 2.5% every year. This is a little less than the 2.6% growth seen last year, but it is still more than the Fed’s goal of 2%.
That’s what Fed Chairman Jerome Powell said not long ago: people think the numbers will come in. Many people think that rates will decrease twice by the year’s end since Powell sounds a little “dovish.” The rate will drop by 25 basis points (bps) in December.
Traders believe it will happen once more in September. Things like stocks and crypto that don’t pay a return tend to increase when interest rates decrease. This made Bitcoin stronger on July 26.
When Bitcoin (BTC) tested the support of its 50-day exponential moving average (EMA), its price went up. Recently, BTC has tried to fall several times but has been stopped at this support level.
When we look at Bitcoin’s price on July 26, we see it is trying to reach the upper trendline of its current falling channel pattern. The target amount is $68,350, 2.50 percent more than now. As long as Bitcoin’s price stays above $68,350, the well-known inverse heads-and-shoulders (IH & S) pattern might show itself. This could mean more gains in August.
The IH&S design has three troughs. The middle trough, called the head, is more profound than the other two, the shoulders. The neckline is the name for the typical resistance in these troughs. The IH&S pattern usually ends when the price breaks above the neckline. Putting this on the Bitcoin map shows that the price could go up to around $87,440 by October.
On the other hand, a pullback from the neckline, which also means a retreat from the upper trendline of the descending channel, could make the bullish setting useless. Instead, the price might return below $60,000 in August, when the channel’s trendline is lower.
