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Cryptocurrency prices were muted this weekend as investors focused on the ongoing Bitcoin Conference in Tennessee and next week’s Federal Reserve interest rate decision.
Bitcoin held steady above $68,000 as speakers continued to make the case for cryptocurrencies. In his statement, Robert Kennedy, a presidential candidate, noted that he would create a Bitcoin reserve fund for the government.
Some experts believe that Trump will make a similar announcement. Polymarket data shows that there is a 35% chance that he will announce such a fund. Another Polymarket poll shows that he will deliver more positive statements on Bitcoin.
The US creating a Bitcoin reserve fund would be a bigger deal than what El Salvador did a few years ago because of its role in the global economy. Such a move would incentivise other governments to allocate Bitcoin into their reserves.
The US is already one of the biggest holders of Bitcoins globally. Data by BitcoinTreasuriesshow that it holds over 213,000 coins while China, the UK, and Ukraine hold 190,000, 61,000, and 46,350 coins.
Looking ahead, the next big thing to watch will be the Federal Reserve decision scheduled for Wednesday. This decision will come after the US published encouraging inflation and GDP numbers during the week.
The general view among analysts is that the Fed will leave interest rates unchanged and then point to a rate cut in September. Such a move will be positive for Bitcoin, AAVE, BitTorrent, Tron, and Conflux.
BREAKING: 🇺🇸 US Presidential candidate Robert Kennedy F. Jr. says he will sign an executive order for the US to buy 550 #Bitcoin a day until they build a reserve of 4 million BTC if elected president. pic.twitter.com/X8Dst1yxBR
— Bitcoin Magazine (@BitcoinMagazine) July 26, 2024
Bitcoin price forecast
Turning to the daily chart, we see that Bitcoin price formed a small hammer pattern this week, triggering a rebound in the past three consecutive days. This rebound has been important since the coin has moved above the descending trendline, the upper side of the falling broadening wedge pattern. A wedge is one of the most popular reversal signs in technical analysis.
Bitcoin has also moved to the third phase of the three drives pattern, a bullish sign. Further, the 25-day and 50-day moving averages have made a bullish crossover chart pattern. Also, oscillators like the Relative Strength Index (RSI) and the MACD have all pointed upwards.
Therefore, Bitcoin could continue rising in the next few days. A good bullish breakout will be confirmed if the token rises above the key resistance point at $72,000, where it formed a double-top pattern in June.
Aave price forecast
Aave token bounced back this week after a proposal to upgrade the $AAVE token’s role in its ecosystem. According to the proposal, the Aave Liquidity Committee would ensure that every AAVE distributed as a reward would be acquired on the secondary market with net excess revenue of protocol.
Leveraging the introduction of Umbrella,
— Marc “Billy” Zeller 👻 🦇🔊 (@lemiscate) July 25, 2024
It’s time to upgrade the $AAVE role in our ecosystem.
Let’s explore this together:https://t.co/70z1jD2pjf pic.twitter.com/He7XPyzkT0
Aave remains one of the most important players in the blockchain industry since it is the third-biggest DeFi network after Lido and EigenLayer.
On the daily chart, we see that the AAVE token formed a strong bottom around the $76.17 level, where it struggled to move below since April. It has now bounced back and moved above the 50-day and 25-day EMA and is slowly approaching the key resistance point at $106.58, its highest point this month.
AAVE has also invalidated the head and shoulders pattern whose shoulders were at $76.17. Therefore, more upside will be confirmed if Aave crosses the key resistance point at $106.5.
BitTorrent price prediction
Justin Sun’s BitTorrent token has not done well this year. After soaring to a high of $0.0000022 in March, it has moved into a deep bear market and retreated to the current $0.000000092. This drop happened as most altcoins tumbled and as its demand dropped.
On the daily chart, the BTT token price bottomed at $0.00000065 on July 18th. It has now bounced back and moved above the key resistance point at $0.00000077, its lowest point in February.
The token is consolidating at the 50-day and 25-day moving averages. At this point, however, this price action cannot be said to be a bullish breakout. Instead, chances are that it is just a consolidation, meaning that it could resume the downward trend and retest the support at $0.00000065.
Conflux price analysis
Conflux, the Chinese cryptocurrency, was one of the top-performing cryptocurrencies as it bounced back by over 10% on Saturday.
Still, the CFX token remains sharply lower than the year-to-date high of $0.5475, where it reached in March. A $10,000 investment at the time would now be worth just $3,250.
The token has formed a small inverse head and shoulders pattern, a popular bullish sign. Its neckline is at $0.1923, its lowest point on April 13th. It has also moved slightly above the 50-day moving average while the RSI is slightly above the neutral point.
Therefore, the Conflux token could see more upside in the coming days. If this happens, it will likely move to the psychological point at $0.20.
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