Can Bitcoin Break $70K Before August Amid New US Crypto Plans?
- Bitcoin is trading nearly 15% higher on the monthly chart and is nearing the $70,000 zone.
- Lummis plans for a U.S. Bitcoin reserve, while Trump seeks to make the U.S. a crypto powerhouse with a national BTC stockpile.
After Bitcoin’s month-long consolidation, this week turned positive for the global cryptocurrency market with a series of pivotal events and announcements.
Bitcoin has shown a strong bounce, trading nearly 15% higher on the monthly chart and nearing the $70,000 zone. This upward movement follows the Bitcoin conference over the weekend, which concluded with major announcements that led to a positive impact on the market.
One of the notable announcements is U.S. Senator Cynthia Lummis’s plans to introduce legislation for a “strategic bitcoin reserve” to help reduce national debt. The proposal includes the U.S. Treasury buying 1 million Bitcoins over five years, worth about $69.5 billion at current prices, and holding them for at least 20 years.
Adding to the bullish sentiment, former President Donald Trump has pledged to make the U.S. the “crypto capital of the planet” and establish a national Bitcoin stockpile. His vision includes retaining 100% of the Bitcoin owned by the U.S. government, further boosting the market’s optimism.
Bitcoin Key Technical Indicators and Market Outlook
The recent price action has seen Bitcoin break above the $68,500 resistance, climbing past $69,000 and nearing $70,000. This rally is supported by a positive market reaction to the anticipated U.S. Federal Reserve interest rate decision set for July 31. The bullish momentum is evident with Bitcoin trading above the key hourly moving averages.
At the time of writing, Bitcoin is trading at $69,712, maintaining its position above the 100-hourly SMA. A key bullish trend line was broken, with resistance at $68,242 on the hourly chart of the BTC/USD pair. The pair gained momentum above the 23.6% Fib retracement level of the downward move from the $69,796 swing high to the $67,277 low.
In an uptrend, a retracement to the 23.6% level can act as a support where the price might face selling pressure. This shallow pullback suggests strong key strength in the uptrend, not needing significant pullbacks before continuing higher.
Further, the Relative Strength Index (RSI) stands at 69, signaling continued bullish momentum without yet reaching overbought conditions. Additionally, Bitcoin’s price is above the 100-day and 200-day moving averages, strengthening the bullish outlook.
If Bitcoin continues its upward trend, it could face resistance near the $69,800 to $70,000 levels. A successful breach of this resistance might propel the price towards challenging its all-time high of $73,750, which is 5.9% down from the current levels.
Conversely, if Bitcoin struggles to clear the $70,000 resistance, it could face a downward correction. Immediate support is around $68,560, with further support levels at $68,250 and $67,500. A more significant decline could test the $65,718 support zone, as per TradingView data.
With significant legislative proposals and strategic moves in the U.S. changing market sentiment, the coming weeks could be crucial for Bitcoin and the broader cryptocurrency market.
