Bitcoin prices could lie in bullish breakout cusp as basic catalysts are built and key technology patterns are formed.
summary
- BTC prices benefit from the new tariffs on gold.
- Donald Trump has signed an executive order to help his retirement funds buy Bitcoin.
- Technical points to more Bitcoin profits in the short term.
Bitcoin (BTC) traded at $116,750 on Friday, August 8th, up from a weekly low of nearly $4,000.
President Donald Trump adds tariffs to gold
A potential catalyst for the surge in Bitcoin prices is President Donald Trump’s shocking tariffs on gold bars. The 1 kilogram and 100 oz bars are subject to mutual tariffs and do not receive exemptions, contrary to analysts’ expectations.
Gold bars imported from Switzerland face 39% tariffs, affecting additional countries such as Canada, Mexico, Peru, Australia and South Africa. Gold prices skyrocketed to hit highs following the news.
The price of Bitcoin could potentially benefit from this development. Therefore, some investors may choose to buy Bitcoin, which is more widely seen as digital gold than the bullion itself.
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Historically, Bitcoin has far surpassed gold. iShares Bitcoin ETF currently holds more than $85 billion in assets and has soon more than $105 billion in assets, potentially surpassing the SPDR Gold Trust founded in 2004.
Bitcoin prices have risen by more than 1,000% over the past five years, while gold has skyrocketed by 72%.
Another potential catalyst for Bitcoin is that Trump has signed an executive order that allows retirement funds to be invested in cryptocurrency. This means the industry will be able to see billions of influxes in the coming months.
The Federal Reserve is also considering cutting interest rates at its upcoming meeting in September. The odds for rate reduction jumped after the US revealed weaker jobs last week.
Bitcoin price technology analysis
BTC Price Chart | Source: crypto.news
Daily time frame charts show possible breakouts. Bitcoin formed a bullish flag pattern that slowly builds. It is often a precursor to further profits.
BTC peaked since May 2022, surpassing the 50-day moving average and core support level by $112,015.
With momentum growing, Bitcoin prices will likely rebound as buyers target the annual high of $123,200. A breakout above that level can open the door to earn more profits and could reach $131,250 at the extreme overshoot level of Mully’s math line.
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