Donald Trump’s endorsement of Bitcoin at the Bitcoin Conference in Nashville has led to a surge in trader confidence, pushing Bitcoin’s price close to $70,000. However, before reaching this milestone, bearish activity began to surface. Despite the current stalling at these levels, the bulls are preparing for a significant push, suggesting that Bitcoin could be on the verge of a massive breakout.

Political Endorsements and Market Momentum

Republican presidential contender Donald Trump, at the Bitcoin 2024 conference in Nashville,  pledged that if elected in November, he would create a “strategic bitcoin reserve” and prevent the United States from selling its current bitcoin holdings. Additionally, Trump announced his plan to dismiss Gary Gensler, the current chair of the Securities and Exchange Commission. His statement was warmly received, particularly his proposal to establish a “strategic BTC reserve” if he wins the next election.

Following Trump’s remarks, Senator Cynthia Lummis declared that she would introduce legislation to create a Bitcoin strategic reserve. This proposed reserve would secure roughly 1 million Bitcoins or 5% of the total supply. Lummis intends to introduce a bill directing the U.S. Treasury to purchase these bitcoins, approximately worth $68 billion, over a five-year period. The legislation would have the Treasury self-custody the bitcoins across various geographic locations, holding them for at least 20 years unless sold to reduce the national debt.

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At the same conference, Cantor Fitzgerald unveiled a significant new project, initiating a $2 billion venture focused on loans and financing for Bitcoin. This development signals a growing institutional interest and confidence in Bitcoin, further influencing its market dynamics.

The $70,000 resistance has proven challenging as bulls struggle to maintain these levels. A notable decline has occurred, dragging the price down by over 18% to 20%. After reaching $69,800 during the previous trading day, buyer momentum has weakened, indicating traders might expect a slowdown in the rally’s speed. Despite this, a hidden bullish divergence could initiate a major upward trend going forward.

As Bitcoin inches towards $70,000, political endorsements and strategic financial moves signal a potentially explosive breakout, making the coming days crucial for the cryptocurrency market.

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