Bitcoin has been struggling to regain the $70,000 level it lost over a month ago. Recently, it reached this mark but couldn’t maintain it. Prices quickly fell to $66,500, breaking through several support levels and moving averages after a sudden 4% drop.
Let’s explore why this happened and what might come next and maybe you can make your own predictions along the way.
One major factor that helped Bitcoin rise to $70,000 was former President Donald Trump’s speech at the Bitcoin Conference 2024 in Nashville.
Trump openly supported Bitcoin and the broader crypto ecosystem, promising not to sell the Bitcoin held by the U.S. government if he is re-elected. Instead, he suggested using the seized Bitcoin as a strategic reserve. Trump has often expressed his desire to make the U.S. a leading player in the Bitcoin and crypto markets, aiming to boost the industry.
The $70,000 level is a significant resistance for Bitcoin, as it was a previous all-time high (ATH). Experts say this level had a lot of sell pressure, making it a tough barrier to overcome. The 20-day moving average (MA) tried to keep Bitcoin around $69,000, but the strong selling pressure pushed it below this level. Bitcoin then fell through the $68,000 support level, causing panic among traders and pushing the price down further.
Adding to the drop, the U.S. government made a notable move with its Bitcoin holdings. According to Arkham’s data, 29,800 BTC, worth $2.02 billion, were transferred from the government’s wallet to an unknown address. This sparked fears of a potential sale, leading to speculation and panic on social media. As a result, Bitcoin’s price fell to $66,500.
Currently, Bitcoin is trading at $67,330. The hourly chart shows that the previous support level of $66,800 is now acting as resistance, while the 200-day moving average is the new support level. The identity of the wallet that received the $2.02 billion worth of Bitcoin is still unknown, leaving its next move uncertain. It could be another government’s wallet or part of a strategic reserve.
Despite this, with decreasing bearish pressure and a supportive global environment for crypto, there is hope that Bitcoin’s price will rise again soon.
What do you think will be Bitcoin’s next move?
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