Key takeaways
- BTC is trading below $109k and could retest the $107k region before rallying high.
- Market analysts believe Trump’s new trade negotiation date of August 1 will make Bitcoin less volatile.
The cryptocurrency market was bullish over the weekend, with the major cryptos currently in the green. Bitcoin climbed above $109k on Sunday but has slightly retraced and could dip lower in the coming hours.
Despite that, analysts remain optimistic about Bitcoin’s medium-term performance ahead of Trump’s trade deal negotiations in August.
Analysts expect a less volatile July for Bitcoin
July could be a quiet month in terms of trade deals as U.S. Treasury Secretary Scott Bessent announced Sunday that tariffs, initially revealed in April, will take effect on Aug. 1.
The tariffs will take effect for countries without a trade agreement with the U.S. Bessent warned that the tariff level will revert to April’s rates if negotiations fail before that date.
While speaking to The Block, Jeff Mei, COO at BTSE commented that,
“Traders previously were concerned about volatility leading up to the July 9 tariff deadline on Wednesday. It looks like markets are rallying after it was revealed countries will have more time to negotiate before tariffs take effect at the beginning of August.”
According to Mei, the upcoming release of the U.S. consumer price index on July 15 will give investors an insight into whether inflation is low enough for the Federal Reserve to lower interest rates.
An interest rate cut would be potentially positive for Bitcoin and could spur it to surpass its current all-time high price of $111k.
BTC could refresh its record highs soon amid bullish sentiments
The BTC/USD 4H chart is bullish and efficient as the bulls are currently in control of the Bitcoin market. The technical indicators suggest that Bitcoin could rally to a new all-time high soon.
The RSI of 53 shows that buyers are regaining control, while the MACD lines are currently in the positive zone, suggesting a strong buying sentiment. However, BTC could retest the low of $107,850 before rallying higher in the near term.
If Bitcoin continues its upward momentum, it could extend the rally toward the May 22 all-time high at $111,980. An extended rally would allow Bitcoin to reach a new all-time high price.
On the flipside, failure to defend the support level at $107,850 could see BTC retest the consolidation zone and Transactional Liquidity (TLQ) area at $105,333.
