- As the U.S. presidential race intensifies, Bitcoin has been at the center of discussions.
- Kennedy Jr. and Donald Trump have both voiced strong support for Bitcoin, proposing significant strategic and regulatory changes.
- Political backing and indicators turning bullish point to a long-term bull market for the cryptocurrency.
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On Monday, Bitcoin's rally to over $70,000 met with heavy selling, causing the price to quickly drop by more than 4%. Despite this setback, the cryptocurrency remains on track to close July with a 6.4% gain at the time of writing, having rebounded from a low below $54,000 earlier in the month.
This drop comes after supply concerns weighed on the crypto amid news that the US government moved $2 billion of Bitcoin to a new digital wallet address on Monday. Such movements tend to precede sales as seen with as seen with the Mt Gox exchange earlier in July.
However, recent political developments indicate that the case for a long-term bull market in Bitcoin remains intact despite the short-term headwinds.
US Politicians Express Support for Bitcoin
As the U.S. presidential race intensifies, Bitcoin could significantly influence its dynamics. Independent candidate Robert F. Kennedy Jr. has voiced strong support for Bitcoin, proposing executive orders to transfer the 204,000 Bitcoins held by the U.S. to the Federal Reserve as a strategic asset and directing the Treasury to buy 500 Bitcoins per day until reserves reach four million BTC.
Similarly, former President and Republican candidate Donald Trump has vowed to transform the United States into the cryptocurrency capital of the world if elected. At the Bitcoin 2024 conference, Trump expressed his respect for the Bitcoin community, likening it to the steel industry of his youth. His running mate, Senator JD Vance, has also been a proponent of cryptocurrency and is working on a draft bill to regulate cryptocurrencies through the SEC and CFTC.
Trump's return to the White House could accelerate cryptocurrency legislation, a stark contrast to his previous presidency when he dismissed cryptocurrencies as baseless. This shift could be seen as a strategic move to attract millions of voters, with recent polls showing that 19% of voters have purchased cryptocurrency. Among these, 19% identify as Democrats, 18% as Republicans, and 24% as independents, indicating a broad, bipartisan interest in digital assets.
Bitcoin: Technical View
From a technical perspective, the Williams%R indicator suggests bullish momentum for Bitcoin. A swing from oversold to overbought levels often signals trend strength, and Bitcoin is currently near the overbought edge. A daily close above $69,000 would confirm this bullish signal.
Moreover, the daily chart below indicates a potential Reversal Head and Shoulders pattern, which could lead to new all-time highs. The coming weeks might be pivotal, as Bitcoin's natural volatility could confirm this bullish outlook for the next 12 months.
Despite the recent pullback, watch out for a close above the $69K level. If that happens, it will be a bullish signal for the crypto.
In conclusion, political backing from key candidates and favorable technical indicators might create strong headwinds for Bitcoin, potentially driving its price to new heights and kicking off a long-term bull market for the crypto.
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remains with the investor.