Bitcoin reduced a significant portion of its weekly losses on July 26; investors await key US inflation data for hints on the timing of interest rate cuts while anticipating Donald Trump’s opening speech at the Bitcoin 2024 conference in Nashville. Bitcoin’s price rose by 2.56% on July 26 to approximately $67,480, marking a 6.40% increase from the weekly low of around $64,425 set a day earlier.
What’s Happening on the US Front?
This rise occurred in the hours before Trump’s speech at the Bitcoin 2024 conference. Social media speculates that Trump might promise to establish a Bitcoin Reserve Policy in the US if re-elected in November. The potential for the world’s leading economy to become a Bitcoin buyer boosts market sentiment.
10x Research CEO Markus Thielen said no one wants to short Bitcoin until the weekend and added:
“It’s clear that he has his eyes on the powerful crypto lobby that raised $150 million for the Crypto Super PAC.”
Bitcoin’s price has increased by more than 16.50% since the assassination attempt on Trump on July 13, boosting his chances of winning the upcoming election.
Bitcoin Chart Analysis
Daily price charts show that Bitcoin price rose after testing the 50-day exponential moving average (50-day EMA; red line) as support. This wave support has limited Bitcoin’s recent downward attempts several times.
As of July 26, Bitcoin’s price is eyeing the upper trend line of the prevailing descending channel pattern. This upward target is approximately 2.50% above the current price level, around $68,350. Interestingly, a rise towards $68,350 could activate the classic inverse head and shoulders (IH&S) setup, potentially leading to more gains for Bitcoin in August.
The IH&S model is characterized by three troughs, with the middle one, called the head, being deeper than the other two, called shoulders. These troughs share a common resistance known as the neckline. As a rule, the IH&S model resolves when the price decisively breaks above the neckline.
