Bitcoin may be poised for a bullish trend due to new economic factors and technical signals.
Tariffs on Gold from President Trump
One factor contributing to the rise in Bitcoin's price is the unexpected tariffs on gold bars introduced by President Donald Trump. One-kilogram and 100-ounce bars are now subject to reciprocal tariffs, which will not be exempt from taxation, contrary to analysts' expectations. Gold bars imported from Switzerland will face a 39% tariff, and other countries are also affected. As a result of this news, gold prices have surged to record levels.
New Opportunities for Retirement Fund Investments
Another factor supporting Bitcoin's growth is President Trump's signing of an order allowing retirement funds to invest in cryptocurrencies. This could lead to increased capital inflows into the industry in the coming months. Additionally, the Federal Reserve is considering cutting interest rates at its next meeting in September, further stimulating interest in cryptocurrencies.
Technical Analysis of Bitcoin Prices
Technical analysis suggests a possible bullish breakout. Bitcoin has formed a bullish flag pattern on the daily chart, which often precedes further gains. Bitcoin has consistently held above its 50-day moving average and the key support level at $112,015. With momentum building, the price of Bitcoin is likely to rebound as buyers target the year-to-date high of $123,200.
In light of recent changes in tariffs and regulations, Bitcoin may become more attractive to investors, creating favorable conditions for its price growth in the near future.
