Bitcoin price has made a bold recovery past the $62,000 mark as the broader cryptocurrency market posts a massive rebound.
BTC is up by around 4% in the last 24 hours to trade at $62,794 as of 02:01 a.m. EST. The recent gains bring BTC’s seven-day gain to around 12%.
Bitcoin’s recent gains came as the German government exhausted all its Bitcoin after several weeks of selling.
The recent price recovery has also led to the Bitcoin Fear and Greed Index rising to a neutral level of 52. This index dropped to “extreme fear” last week as Bitcoin slumped to a two-month low.
Bitcoin Recovers Past $62K
The Bitcoin bull run appears to have started after BTC breached the crucial $60,000 price and erased the recent losses. The bullish sentiment has seen the coin move from the $55,000 price to more than $62,000.
Looking at Bitcoin’s Relative Strength Index (RSI) at 77, it appears that strong buying pressure is behind the recent price gains. The RSI line has also been on a steady uptrend, showing buyers have overwhelmed the sellers, allowing for more gains.
The Moving Average Convergence Divergence (MACD) line also shows a bullish signal as it remains above the signal line. The MACD histogram bars are also positive, suggesting bullish momentum is in play.
The recent price recovery and the solid bullish momentum shown by the indicators could contribute to more gains if buyers remain in the market.
However, traders should also be cautious about a potential correction if the RSI enters the overbought region. In this case, profit takers will start selling, causing a possible drop back to the demand zone at $60,000.
Politics Influence Bitcoin Price Action
The recent recovery in Bitcoin prices comes after former US President Donald Trump survived an assassination attempt last week.
Trump has come out as pro-Bitcoin and pro-crypto, given that he has vowed to support the cryptocurrency industry if elected in the November elections. Therefore, if he wins, the cryptocurrency market is poised to benefit and gain legitimacy across the US.
According to Santiment, the crypto market had an “immediate reaction” to Trump’s assassination attempt. The market reacted positively to pro-Trump developments, which could result in more volatile price actions as the November election nears.
“As we near elections this fall, the cryptocurrency community has generally shown bullish responses toward pro-Trump news, due to his recent pro-crypto comments. It goes without saying that surviving an assassination attempt is perceived as pro-Trump news. Therefore, bullish responses have occurred as a result,” Santiment said.
Trump has also confirmed that he will still attend The Bitcoin 2024 Conference happening at the end of the month. He is expected to be the event’s highlight alongside other pro-crypto speakers like MicroStrategy’s Michael Saylor and ARK Invest’s Cathie Wood.
