Bitcoin’s Political Power Play: The Trump Alliance
BTC/USD Hits $70K, Faces Critical Support at $63,600
Former President Donald Trump is going “all-in” on cryptocurrency, promising to make the U.S. a “Bitcoin superpower” if re-elected. Speaking at a Bitcoin conference in Nashville, Trump laid out plans to turn the U.S. into the “crypto capital of the planet.” His plans include creating a strategic Bitcoin reserve with part of the government’s current BTC holdings and forming a crypto advisory council. He also promised to replace SEC Chair Gary Gensler and implement crypto-friendly regulations.
Big words coming from former President Trump, and it raises the question: to what extent do these statements reflect his genuine ideology versus a strategic move to win over crypto enthusiasts’ votes?
Even more so, this marks a dramatic shift from his earlier stance in 2019 when he criticized cryptocurrencies as volatile and based on thin air. Trump now vows to transform seized Bitcoin assets into national assets and commute the sentence of Ross Ulbricht, creator of the Silk Road website.
Trump’s speech followed independent candidate Robert F. Kennedy Jr., who also proposed a strategic Bitcoin reserve. It looks like Bitcoin is being clout-chased by politicians… or maybe they are truly seeing it as a remarkable asset.
Bitwise’s chief investment officer, Matt Hougan, reflected on these recent political promises and noted that plans such as the ones outlined above now seem plausible. He noted the significant shift from two years ago when Bitcoin was struggling at $17,000 amidst the FTX collapse and widespread skepticism.
Chart Analysis – BTC/USD
Earlier in the week, Bitcoin reached a significant milestone: it breached $70,000, albeit by a mere $16. The exact figure may vary slightly depending on the platform you check. Immediately after touching the $70K milestone, BTC/USD dropped directly to the support at $63,600, which is starting to become more and more important for short and medium-term price action.
The current move comes after a bearish divergence, which is a strong signal and usually creates notable movements. This means that a break of the support at $63,600 combined with the divergence signal, will probably generate a deeper pullback. The 50-day Moving Average is very close to the horizontal support, creating a confluence zone.
In other words, we are dealing with a bounce-or-break scenario that could trigger heavy movement either way. A break would show bearish pressure and a bounce would bring in more sellers that will join either out of fear of missing out (FOMO) or for technical reasons.
